On Monday, six US lawmakers urged an investigation into the Biden administration’s Justice Department for its actions against the Adani Group. A formal letter was sent to the newly appointed Attorney General Pam Bondi, highlighting concerns over the negative impact of the Justice Department’s decision on US-India relations. While acknowledging India as a crucial ally, the lawmakers stated that the actions taken against the Adani Group had harmed America’s economic and diplomatic interests.
The six lawmakers—Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R. Timmons, and Brian Babin—criticized the Justice Department’s actions as misguided and detrimental. They expressed concerns that such moves could damage relations with India, a key economic and strategic partner. The lawmakers also alleged that the investigation into Adani Group was part of a misleading campaign.
Fraud Allegations Against Adani Group
The controversy began last year when eight individuals, including Indian industrialist Gautam Adani, were accused of fraud worth billions of dollars in the United States. According to the charge sheet, Adani’s company allegedly acquired renewable energy projects in India through unfair means. The accusations included a plan to bribe Indian government officials with an amount totaling $250 million (approx. ₹2,029 crore).
Additionally, the accused were alleged to have misled American investors and banks to secure funds. The case, which primarily involved Adani Green Energy Limited and another firm, was officially registered in the Federal Court of New York on October 24, 2024.
No Direct Evidence of Bribery
Despite the serious nature of the allegations, the charge sheet does not explicitly mention that a bribe was given. Instead, it refers to discussions and potential planning of bribery, marking a violation of the US Foreign Corrupt Practices Act (FCPA). The matter came to light during a court hearing on November 20, 2024.
US Lawmakers Say National Interests Have Been Harmed
The lawmakers strongly opposed the Justice Department’s actions, stating that the investigation unfairly targeted individuals and corporations that had significantly contributed to the US economy. They argued that Adani Group’s investments had created thousands of jobs in the United States and that this legal action could hinder future economic collaborations.
They further demanded an inquiry into why the Justice Department selectively pursued certain cases while ignoring others. The lawmakers believe that this move jeopardized US-India relations, posing a risk to economic and strategic partnerships between the two nations.
China Could Benefit from US-India Tensions
The lawmakers also warned that deteriorating US-India relations could create an opportunity for China to strengthen its grip on the global supply chain. They highlighted how China’s Belt and Road Initiative (BRI) aims to control critical infrastructure worldwide, and weakening ties with India could give China a strategic advantage.
According to them, the US and India have traditionally enjoyed strong economic and military cooperation. They pointed out that former President Donald Trump had prioritized maintaining a positive relationship with India, and actions like these could disrupt diplomatic ties.
Adani Group Denies Allegations
The Adani Group strongly refuted all allegations. On November 21, 2024, the company released an official statement declaring that the accusations made by the US Department of Justice and the US Securities and Exchange Commission were completely baseless. The group firmly denied all charges.
Impact on Adani’s Net Worth and Business Deals
Following the reports, Gautam Adani’s net worth plummeted by ₹1.02 lakh crore. Additionally, Kenya terminated two major deals with the Adani Group—one for power transmission and another for airport expansion. The combined worth of these canceled projects was ₹21,422 crore.
Conclusion
The Justice Department’s actions against the Adani Group have sparked major controversy, with US lawmakers calling for an inquiry into the Biden administration’s handling of the case. Given the potential impact on US-India relations and concerns over China’s growing influence, this issue could have far-reaching consequences. As investigations continue, the future of economic cooperation between the two nations remains uncertain.