The White House executive order pausing FCPA and its impact on Gautam Adani’s case

IN November 2024, the news of the Indian billionaire's indictment by US authorities took the internet by storm. U.S conglomerate, an Indian Business tycoon, along with several other executives, were charged with serious offences under the U.S Foreign Corrupt Practices Act of 1977 (FCPA), and US Securities Exchange Act of 1934 for allegedly offering bribes of more than $ 250 million to Indian officials for procuring solar power contracts. While the place of the alleged offence was India, the U.S. authorities were of the view that American investors were harmed.

The above executive order was published on 10th February 2025 and stated that “The President’s foreign policy authority is inextricably linked with the global economic competitiveness of American companies.  American national security depends in substantial part on the United States and its companies gaining strategic business advantages whether in critical minerals, deep-water ports, or other key infrastructure or assets.

    But overexpansive and unpredictable FCPA enforcement against American citizens and businesses — by our own Government — for routine business practices in other nations not only wastes limited prosecutorial resources that could be dedicated to preserving American freedoms, but actively harms American economic competitiveness and, therefore, national security.

     It is therefore the policy of my Administration to preserve the Presidential authority to conduct foreign affairs and advance American economic and national security by eliminating excessive barriers to American commerce abroad.” 

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Following this order at least for a period of 180 days, there shall be no new investigations or enforcement actions the Attorney General determines it as an exception and the Attorney General shall review guidelines and policies governing investigations and enforcement actions under the FCPA.