Adani indictment: FCPA case taking too long to wrap up

Cases prosecuted under the U.S. Foreign Corrupt Practices Act (FCPA) take an average of about three years to resolve, according to a Stanford Law School analysis of cases since the law was enacted nearly half a century ago. The study, which is continuously updated, covers corruption investigations into 487 companies and 555 individuals.

A 1977 U.S. law prohibits bribing foreign officials to obtain or retain business. It applies to any person or entity subject to U.S. jurisdiction, including foreign companies raising capital in the United States. The U.S. Department of Justice (DoJ) and the U.S. Securities and Exchange Commission (SEC) are primarily responsible for investigating alleged violations of the FCPA. Both agencies filed charges against the Adanis.

The Adani Group called the allegations against its founder Gautam Adani and his nephew Sagar “baseless”, adding that it would explore all possible legal recourse.

According to research from Stanford University, 93% of defendants facing FCPA charges choose to settle with the SEC rather than challenge them in court. However, the settlement rate with DOJ was lower at 74%.

An indictment is the first step after an investigation, and authorities need to provide evidence of wrongdoing to advance their case. In a settlement, the party being sued agrees to pay a fine but does not admit wrongdoing.

Offenders paid an estimated $11.6 billion in bribes, while US authorities imposed $31 billion in fines. The average fine was $58.3 million. Many were also imprisoned or placed under house arrest, with an average of 31 months in prison or under house arrest.

Adani’s prosecution makes it the 26th case investigated under the FCPA in India, behind Brazil’s 34 cases, China’s 75 cases and the same number as Mexico.

Federal prosecutors in New York on Wednesday indicted a total of eight people for allegedly paying more than $250 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar contracts.

According to the indictment, Adani Green Energy Ltd. raised $2 billion from U.S. and foreign investors based on false and misleading statements about the company’s anti-corruption and anti-bribery efforts. To that end, the U.S. Department of Justice has launched a criminal investigation, while the U.S. Securities and Exchange Commission is conducting a civil investigation into Gautam Adani, his nephew Sagar Adani and Adani Green Energy CEO Vineet Jain .

In 2016, Cognizant Technology Solutions Corp., a New Jersey-based information technology services company that has two-thirds of its employees in India, was accused of bribing Indian officials to speed up the construction of its Indian offices.

Cognizant paid about $28 million to the Justice Department and SEC, and its former chief operating officer, Gordon Coburn, was fired from the company. The case against Coburn continues in U.S. courts.

Varun Sood contributed to this story.