As many as six U.S. Congressmen have written to the newly appointed Attorney General of the United States against “questionable” decisions made by the U.S. Department of Justice (DoJ) such as the indictment against the Adani Group in an alleged bribery scam, which “jeopardises the relationship with close ally India”.

Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R. Timmons and Brian Babin on Monday (February 10, 2025) wrote to Pamela Bondi, Attorney General of the U.S. drawing “attention to some questionable decisions made by the DOJ under the Biden administration”.

In November 2024, U.S. prosecutors charged Mr. Adani with participating in a scheme to pay Indian officials over $250 million (about ₹2,100 crore) in bribes in exchange for favourable terms for solar power contracts.

This was concealed from the U.S. banks and investors from whom the Adani group raised billions of dollars for the project, the prosecutors have alleged.

U.S. law allows pursuing foreign corruption allegations if they involve certain links to American investors or markets.

The Adani group, however, has denied the charges.

“Some of these decisions involved selectively pursuing and abandoning cases, often acting against America’s interests at home and abroad, jeopardizing relationships with close allies like India,” the Congressmen said in the joint letter.

India, they said, has been an important ally of the United States for decades. This relationship has flourished beyond politics, trade, and economics by evolving into a continuous socio-cultural exchange between the world’s two largest democracies.

“This historical partnership and continuous dialogue between friends, however, was put at risk due to some unwise decisions by the Biden administration,” they said.

“One such decision involves a questionable pursuit of a case against the Adani group, an Indian company whose executives are situated in India. This case rests on the allegation that preparations were made by members of this company in India to bribe Indian officials, also exclusively located in India.

“Instead of deferring the case to the appropriate Indian authorities, the Biden DOJ decided to push forward and indict the company’s executives without any real injury to US interests being present,” they wrote.

No reason to pursue case

The Congressmen said there was no compelling reason to pursue a case in a manner that could complicate relations with an ally like India unless some external factors were at play.

“This misguided crusade came at the risk of harming our relationship with a strategic geopolitical partner like India immediately preceding President Trump’s return to the Oval Office.

“Considering President Trump’s commitment to revive America’s economic prosperity, our economic relationship with valuable partners from India and abroad works as an important factor in achieving that goal,” they said.

The letter went on to state that needless pursuits against those who have contributed tens of billions and created thousands of jobs deter and discourage investors from contributing to the U.S. economy.

“Considering these factors and the lack of any real injury to U.S. interests, the decision to pursue this indictment demonstrates more harm for America’s interests than good, if any,” it said.

America and India share a sense of mutual respect and appreciation, a sentiment emulated by President Trump and Prime Minister Modi. President Trump has always recognised the true potential of a strong and beneficial relationship between two economic and military superpowers like the US and India. He has diligently worked with the Modi government to forge a strong relationship between our two great nations. Prime Minister Modi has reciprocated these efforts by proving India to be a valuable ally of America in the Asia-Pacific region, especially against the growing threat from China, according to the letter.

“Conversely, politically motivated decisions by agencies steered by left-wing megadonors could quickly erode years of hard work and diplomacy forged by our leaders.

“A fallout in relations not only harms our longstanding partnership with a key ally but greatly benefits adversaries like China in their goal to eliminate the American economy and achieve total global economic control through their Belt and Road Initiative (BRI),” it said.

This selective pursuit by the Biden DOJ, despite knowing the possible outcomes of such a reckless decision, requires a second look, they wrote adding knowing the real considerations guiding this decision will also be a major step in uncovering whether the previous administration was compromised to outside entities over the past four years.

“We request you investigate the Biden DOJ’s conduct and would appreciate you sharing with us all records pertaining to this case, for a coordinated effort in uncovering the truth,” they added.

Challenging the decision of the Biden administration to investigate the activities of billionaire Gautam Adani, an influential Republican lawmaker in the U.S. has said such selective actions risk damaging critical alliances with key partners.

In a strongly worded letter to U.S. Attorney General Merrick B. Garland, Congressman Lance Gooden, a member of the House Judiciary Committee also asked, “What will the U.S. do if India refuses to comply with an extradition request.”

Mr. Gooden also demanded answers on the Justice Department’s selective prosecution of foreign entities and the potential harm such actions pose to the U.S.’s global alliances and economic growth and if there is any Geroge Soros connection to it.

“The Department of Justice’s selective actions risk damaging critical alliances with key partners like India, one of America’s strongest allies in the Asia-Pacific region,” Mr. Gooden said in his letter dated January 7.

Gautam Adani indictment: In-depth coverage

“Instead of pursuing cases with tenuous jurisdiction and limited relevance to the U.S. interests, the DOJ should focus on punishing bad actors at home, rather than chasing rumours abroad,” he said.

‘Harms the U.S.’

The five-term Republican lawmaker said that targeting entities that invest tens of billions of dollars and create tens of thousands of jobs for Americans only harms the U.S. in the long run.

“When we forego real threats from violent crime, economic espionage, and CCP influence and go after those who contribute to our economic growth, it discourages valuable new investors who are hopeful of investing in our country,” he said.

“An unwelcome and politically charged atmosphere for investors will only stall efforts to revitalise America’s industrial base and economic growth, directly undermine President Trump’s commitment to revive the economy with increased investments.

“Given the timing of these decisions coincides with the end of the Biden administration, concerns arise that the only true goal here is disruption for President Trump,” Mr. Gooden said.

Instead of expending valuable taxpayer resources on opening lengthy and perhaps politically motivated pursuits in foreign countries thousands of miles away, the Department should cooperate with the incoming administration on better serving the American people, he said.

“As a cog in the outgoing administration, it is your duty to the public in being mindful of not creating further complications that could compromise America’s geopolitical eminence,” Gooden said in the letter two weeks ahead of the inauguration of Donald Trump as the 47th president of the United States on January 20.

‘Straining America’s global alliances’

“I am writing to inquire about the Department of Justice’s (DOJ) recent selective pursuits of cases against foreign entities that could irreparably strain America’s global alliances,” he said.

“As our country enters a new period under President Trump, Americans are hopeful it will mark the revival of prosperity, growth, economic recovery, and political freedom. An important factor in our quest to revive our country’s prosperity includes the ability and freedom of prospective investors to do business in America,” he wrote.

“In complete abeyance of public outcry about the rising violent crimes at home, the DOJ seems to be pursuing new expeditions to target businesses for alleged injustices abroad,” he said.

“The allegations in the Adani case, even if proven true, would still fail to make us the appropriate and final arbiter on the issue. These ‘bribes’ were allegedly paid to Indian state government officials, in India, by Indian executives of an Indian company, with no concrete involvement of or injury to any American party,” Mr. Gooden wrote.

Gautam Adani has been charged by US prosecutors for allegedly being part of an elaborate scheme to pay $265 million (about ₹2,200 crore) bribe to Indian officials in exchange for favourable terms for solar power contracts.

Adani Group, however, denied the charges saying the allegations by U.S. prosecutors are “baseless” and the conglomerate is “compliant with all laws”.

“Conversely, Smartmatic, an American company responsible for conducting our elections, had executives who allegedly laundered money and paid bribes to foreign governments, according to the DOJ’s indictment earlier. However, despite numerous attempts by my colleagues and I to have our concerns addressed before the elections, we were never briefed by your department,” Mr. Gooden wrote.

Mr. Gooden asked why has the DOJ not indicted a single American if the case involves a significant nexus with the United States.

“Were there no Americans involved in this alleged scheme? Why has the DOJ pursued this case against Gautam Adani when the alleged criminal act, and the parties allegedly involved are in India? Do you seek to enforce justice in India?” he asked.

“Will the DOJ seek an extradition of the Indian executives involved in this case? What is the DOJ’s contingency plan if India refuses to comply with an extradition request and claims sole authority over this case? Is the DOJ or the Biden administration willing to escalate this case into an international incident between the United States and an ally like India?” the lawmaker said.

Indian billionaire Gautam Adani.
| Photo Credit: Reuters

The U.S. fraud case against Indian billionaire Gautam Adani appears to be backed by documents that will help prosecutors make a strong case, legal experts said, but the tycoon is unlikely to be extradited to stand trial anytime soon.

Federal prosecutors in Brooklyn last month unsealed an indictment accusing Mr. Adani of bribing Indian officials to convince them to buy electricity produced by Adani Green Energy, a subsidiary of his Adani Group conglomerate, and then misleading U.S. investors by providing reassuring information about the company’s anti-corruption practices.

Gautam Adani indictment: In-depth coverage

Mr. Adani, his nephew Sagar Adani, and another Adani Group executive were charged with securities fraud and conspiracy. Five people affiliated with Azure Power Global, a formerly-U.S.-listed company also allegedly involved, were charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).

Azure has said it had cooperated with the investigation and that those charged were no longer with the company. Adani Group has called the allegations “baseless” and vowed to seek “all possible legal recourse.”

Gautam Adani is not in custody. He has made at least two public appearances in India since the indictment, including at a Dec. 9 event also attended by Prime Minister Narendra Modi.

According to the indictment, prosecutors found ledgers of the alleged payments on Sagar Adani’s cellular phone, which they called “bribe notes.” Prosecutors also said Gautam Adani emailed himself a copy of a search warrant and grand jury subpoena the FBI had served on his nephew on March 17, 2023.

Those electronic records could be important pieces of evidence for prosecutors to try to prove that Sagar Adani and Gautam Adani knew they misled investors by failing to disclose the investigation and insisting they had strong anti-corruption practices when in fact they had paid bribes, experts said.

“The allegations include references to corroborating material, and that always provides for a stronger case,” said Stephen Reynolds, a former federal prosecutor and current partner at law firm Day Pitney.

To be sure, prosecutors may face challenges. Gautam Adani could argue that he was not personally involved in crafting the statements the company made to investors about its anti-bribery practices, said Paul Tuchmann, a former federal prosecutor in Brooklyn and now a partner at law firm Wiggin & Dana.

Prosecutors may also struggle to secure live testimony from witnesses in India because the process could require assistance from New Delhi, and the government may be reluctant to facilitate testimony that could paint Indian officials in an unfavorable light, said Mark Cohen, a former federal prosecutor in Brooklyn and current partner at law firm Cohen & Gresser.

India’s Foreign Ministry on Friday referred to a Nov. 29 statement in which it said it had not received any request on the case from Washington, and called the case a matter between private firms and the U.S. Justice Department.

The U.S. Justice Department declined to comment on whether the United States had asked India to extradite Gautam Adani.

‘PLAY BY THE RULES’

Both Adani Group and Mr. Adani himself have recently made public statements emphasizing that the conglomerate’s executives had not been charged with violating the FCPA.

Conspiracy to violate the FCPA is punishable by up to five years behind bars. The fraud charges Gautam Adani and the other Adani Group defendants face are each punishable by up to 20 years in prison.

Drew Rolle, the deputy chief of the business and securities fraud section at the Brooklyn U.S. Attorney’s office, said his office had a responsibility to protect the integrity of U.S. capital markets.

Also Read | The return of the Adani solar beam 

The office has secured a number of convictions in foreign bribery cases with U.S. connections. In August, jurors found Mozambique’s former finance minister guilty on fraud and money laundering conspiracy charges for embezzling loan proceeds he had told banks were destined for economic development projects.

Rolle said honest companies are harmed when firms like Mr. Adani’s allegedly mislead investors.

“It’s not only a bribery case, it’s an important securities enforcement case,” he said at a Dec. 6 conference in New York hosted by the Practicing Law Institute. “If you’re going to access our capital markets, you’re going to play by the rules.”

Indian billionaire Gautam Adani.
| Photo Credit: Reuters

An Indian government agency charged with promoting renewable energy has changed the way it issues power tenders to reduce the risk of corruption after U.S. allegations of bribery in some tenders, said an official with direct knowledge of the matter.

The Solar Energy Corporation of India (SECI) earns commission for linking renewable energy producers with buyers. It was an intermediary in solar power deals involving Adani Group and several states where U.S. authorities have said bribes were paid to unidentified officials between 2021 and 2022.

Gautam Adani indictment: In-depth coverage

The ports-to-power Adani Group has denied the allegations, calling them baseless.

U.S. authorities have not accused SECI of any wrongdoing.

SECI, which selects renewable energy producers for projects through bids and then signs deals with power buyers, said last month it had “no basis so far” to investigate the allegations and that it was “not clear if any of SECI’s covenants have been violated”.

About 75% of SECI’s new bids for renewable power will now be based on specific demand from states instead of the earlier practice of mainly seeking power suppliers first through tenders and then approaching buyers, said the SECI official, who did not want to be named, citing the sensitivity of the matter.

A spokesperson for SECI did not immediately respond to a request for comment outside regular business hours on Monday.

The official said the earlier practice, which used to account for about 90% of the bids, had raised the risk of corruption by power producers seeking to influence buyers in states to sign up to deals even if they did not need the power. The official did not name any companies or give any examples.

The source said SECI had not found any reason to independently investigate any deals it had been part of and that no agency within India or outside had reached out to it.

The allegations against the Adani Group, nevertheless, could temporarily cut foreign investments in India’s renewable sector, said the source, adding that SECI expected tendering to slow down for the rest of the fiscal year that ends on March 31.

Also Read | The return of the Adani solar beam 

SECI’s target for this fiscal year was to find bidders for 15 gigawatts (GW) of power, but it has managed only about 6-7 GW so far.

India is still more than 10% short of its pledge to add 175 GW of renewable power by 2022. It wants to reach 500 GW by 2030.

It’s been more than a week since the US Department of Justice, FBI and the Securities and Exchange Commission issued indictments- charging the Adani group, its top leadership including Gautam Adani of a conspiracy to bribe Indian government officials for contracts, and defrauding US investors by raising capital through bonds issues.

Remember these are indictments – they still need to go through a trial process, and only if there’s a conviction will the case itself go forward – there’s also the possibility of Adani paying fines and settling the case.

The Adani group has denied the charges – 5 counts in all naming various Adani group officials in India and the US and will take legal recourse. The links to these are below, and you can also see explainers at www.thehindu.com

Department of justice

US Securities and Exchange Commission

What is the impact of the Adani indictment on India-US ties?

To begin with, the Government’s response has been silence- with the explanation that this is a private company, and not connected with the government.

Remember, last year, the MEA had not responded to a series of allegations against the Adani group by US short-seller and market research company Hindenberg Research either. An Adani group official had alleged a conspiracy to defame India, even standing in front of the However, this time it is the FBI, the Department of Justice and the Securities and Exchange Commission making the allegations, which requires a response at a more official level.

Along with the FBI and DoJ’s investigation into the Pannun assassination plot case- the timing of the indictments into Adani appear to have political significance- given that the new Trump administration will come into place January 20th and will change most of the top prosecuting officials in both cases.

There is also the question of US double standards and overreach- given the indictment is for alleged bribes paid in India to Indian officials.

With warm personal ties with PM Modi and a planned visit by the US President to India for the Quad summit next year the government will likely not worry about the impact of other aspects of bilateral ties.

However, the company itself will not be able to raise funds in the US, nor will it have recourse to US government grants like the DFC loan for Colombo port in the foreseeable future, and this may impact India-US projects in the following areas:

Routing of funds for climate change transition from the US- given the Adani group’s dominance of solar power projects

Cooperation for High-Tech and Defence deals which may involve the group

Infrastructure projects in other countries where India, US are cooperating

What is the impact of the indictment on ties with other countries?

The first impact was seen in Kenya, where President Ruto cancelled contracts for an energy plant and airport project with the Adanis

In Sri Lanka the government announced it has a review by the ministry of Finance and Foreign Affairs looking into the Adani projects for a terminal at Colombo port, and wind energy. In responses to The Hindu, the US DFC said it is assessing the situation and hasn’t disbursed the $553 million project it promised a year ago.

In Bangladesh, after the courts ordered an enquiry, the government set up a panel to look into charges of overcharging and corruption into the Adani power agreement to supply power from a plant in Godda, Jharkhand.

In France, energy major Total said it was holding any further investment into an LNG venture with Adani.

Governments in countries like Tanzania where Adani is developing a container terminal, and Israel where Adani ports runs a terminal in Haifa port, have said they will continue with the projects however.

Remember Indian economic operations have already been affected by Geopolitics.

– Russia’s war in Ukraine has meant Sanctions against about 30 Indian companies

– Israel’s war in Gaza has affected IMEEC and I2U2

– Iran-US tensions have meant India lost a major supplier of oil due to sanctions. Also Venezuelan oil

– Sanctions on Myanmar have stopped infra projects

– Government Changes in Maldives Bangladesh and Sri Lanka have put Indian projects under the scanner

What does this mean for India’s investment diplomacy and image?

US charges will cause reputational damage when it comes to integrated and allied economy in North America and Europe.

Adani investments and projects have been closely aligned with Modi government’s foreign policy forays and priorities in infrastructure development and energy- both thermal and green power –- with projects in Nepal, Bhutan, Bangladesh, Sri Lanka, Myanmar, Kazakhstan and discussions with Indonesia, Vietnam and Greece, following shortly on high-level meetings with PM Modi- therefore it is harder to distance from the fallout of the US indictments.

If the trial proceeds in the US it puts a cloud over India’s own legal and regulatory mechanisms on dealing with corruption internally, and will raise questions about what steps the government is taking.

While these cases are about alleged corruption and coercion inside India, other states, especially where governments have changed may open enquiries into the nature of projects done by Indian companies with their predecessors.

WorldView Take:

For years, India’s foreign policy has been fuelled by its economic progress and the capacity of Indian companies to carry out international projects. It is futile to assume that charges brought against a major Indian company by a major global power will have no impact on India’s image or global economic policies. While there is no question, the US’s actions indicate a considerable overreach, they fall within American laws- and India cannot expect MNCs to operate according to Indian laws here, while not ensuring Indian companies do the same abroad.

Reading Recommendations:

 India’s Moment : Changing Power Equations around the World by Mohan Kumar
Gautam Adani: Reimagining Business in India and the World by R.N. Bhaskar

The End of the Chinese Century? How Xi Jinping Lost the Belt and Road Initiative by Bertil Lintner

The Great Tech Game: Shaping Geopolitics and the Destiny of Nations by Anirudh Suri

India’s Development Diplomacy: Understanding Development Cooperation As A Tool For Strategic Engagement In South Asia by Urmi Tat

India’s Trade Policy: Arvind Panagariya

Presentation and script: Suhasini Haidar

Editing: Kanishkaa Balachandran, Sabika Syed

Adani Power was nearly 16% up, while Adani Ports and SEZ had risen 7.2% in the morning trade on November 27, 2024.
| Photo Credit: Dado Ruvic

After getting beaten down on Tuesday, all Adani group stocks recovered sharply on Wednesday (November 27, 2024), with Adani Green Energy Ltd. seeing the first uptick in share price since the U.S. Court indictment of the firm and its senior employees on bribery and securities fraud charges came to light on November 21, rising 10% as of 1330 hours on the Bombay Stock Exchange.

The group flagship Adani Enterprises was also up 10%, after a 4.8% decline on Tuesday (November 26, 204). Adani Energy Solutions Ltd was 10% higher as well.

Also read: Former Attorney General Mukul Rohatgi says no bribery charges against Gautam Adani, nephew in U.S. indictment

Adani Wilmar had risen 7.3% so far on Wednesday (November 27, 2024), while the group’s cement firms ACC and Ambuja Cements, were up 4.3% and 4.6%, respectively.

Adani Total Gas led the gains with a 16.5% surge, indicating investors were unfazed by the French partner TotalEnergies SE’s decision to freeze fresh investments into the Adani group.

Adani Power was nearly 16% up, while Adani Ports and SEZ had risen 7.2% in the day’s trading so far.

TotalEnergies purchased a 19.75% stake in Adani Green Energy in January 2021 – after the Indian company won what was then the world’s largest solar order, and just months before the payments to officials were alleged to have begun.
| Photo Credit: Reuters

French oil major TotalEnergies SE was not informed of a U.S. investigation into possible bribery and corruption at Adani Green Energy Limited, it said on Monday (November 25, 2024), adding it will stop financial contributions to investments with Adani Group companies following last week’s U.S. federal indictment.

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a statement.

“TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme,” the company added.

U.S. prosecutors on Thursday (November 21, 2024) charged eight people — including Indian tycoon Gautam Adani, his nephew Sagar Adani and the former CEO of Adani Green Energy Limited — with promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages.

The French firm purchased a 19.75% stake in Adani Green Energy in January 2021 – after the Indian company won what was then the world’s largest solar order, and just months before the payments to officials were alleged to have begun.

Total also owns a 37.4% stake in Adani Total Gas Limited, as well as a 50% stake in three renewable joint ventures with Adani Green Energy.

Two of those joint ventures were entered into after the FBI served search warrants on Sagar Adani and seized evidence related to Adani Green Energy.

TotalEnergies shares were down 0.04% at 0945 GMT on Monday (November 25, 2024).

Adani Group’s plunged up to 20% on Thursday after he was indicted by U.S. prosecutors on charges he duped investors in a solar energy project in India by concealing that it was being facilitated by an alleged bribery scheme.

In an indictment unsealed by federal prosecutors in New York on Wednesday (November 20, 2024), Gautam Adani, 62, was charged with securities fraud and conspiracy to commit securities and wire fraud.

Also read: Gautam Adani U.S. indictment LIVE 

The flagship company Adani Enterprises witnessed a sharp decline of 20% in its share value, while Adani Energy Solutions experienced an identical drop. Adani Green Energy saw a reduction of 19.17%, Adani Total Gas decreased by 18.14%, Adani Power fell by 17.79%, and Adani Ports registered a 15% decline on the BSE.

Adani Enterprises

Adani Enterprises Limited (AEL) is a multinational publicly-listed holding company and a part of Adani Group. Through its various subsidiaries, Adani Enterprises is involved in edible oils and staple foods, airport operations, solar PV manufacturing, road infrastructure, among several other sectors.

Adani Green Energy

Adani Green Energy Limited is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.

Adani Power Limited

Adani Power Limited, a part of the diversified Adani Group, is the largest private thermal power producer in India. APL possesses a power generation capacity of 15,250 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, and a 40 MW solar power project in Gujarat.

Adani Total Gas

Adani Transmission

Headquartered in Ahmedabad, Adani transmission is one of India’s largest private sector electric power transmission companies.

Adani Wilmar

Adani Ports and Special Economic Zones

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.

ACC

Ambuja Cements

NDTV

Share market data from The Hindu Businessline