How will Adani navigate bribery allegations? Legal precedents offer clues for future

The Adani Group is facing mounting legal challenges in the United States, with both the Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) leveling bribery charges against the conglomerate under the Foreign Corrupt Practices Act (FCPA).

Adani has categorically denied the accusations, calling them “baseless” and vowing to pursue all legal remedies. However, the developments have already caused ripples, including the cancellation of Adani Green Energy’s US dollar-denominated bond sale.

The path forward for Adani involves navigating a complex legal landscape, one where historical precedents may offer insights but no guarantees.

Over the years, several global corporations have faced FCPA charges and resolved them through settlements, often involving substantial penalties. Here are some notable cases:

1. Siemens (2008): Siemens faced bribery charges across several countries, including Argentina, Venezuela, and Bangladesh. The case resulted in the company paying $800 million in penalties and pleading guilty. Siemens’ case highlights the significant financial and reputational costs of such allegations.


2. Goldman Sachs (2020): One of the largest settlements under the FCPA, Goldman Sachs was implicated in bribery involving overseas governments. The financial giant paid a staggering $2.5 billion to resolve the charges, avoiding prolonged litigation.


3. Oracle (2012): Oracle faced bribery allegations in India, with charges brought by both the DoJ and the SEC. While the company settled with the SEC for $23 million, the case illustrates that settling with one agency does not necessarily resolve charges with the other.


4. SAP (2010): SAP entered into a deferred prosecution agreement (DPA) with the DoJ, agreeing to pay $220 million in fines without admitting guilt. However, such agreements are typically reached before formal court indictments. Since Adani has already been indicted, this route may no longer be an option.

The Biden administration has emphasised stricter enforcement of corporate accountability laws, including the FCPA. However, there is precedent for settlement agreements that allow companies to avoid admitting guilt—a route the Adani Group may seek to explore.