United States President Donald Trump on Monday signed an executive order directing the justice department to pause prosecutions of Americans accused of bribing foreign officials to secure business deals.

The order halts enforcement of the Foreign Corrupt Practices Act, a 1977 law that bars US companies from bribing foreign government officials. Trump has directed US Attorney General Pam Bondi to review actions related to the Act and draft new enforcement guidelines.

The law made companies that operate in the US less competitive, the White House said.

The decision has been viewed as a potential relief for the Adani Group and its chairperson Gautam Adani. With the pause in prosecutions under the Act, ongoing investigations against them could be delayed or potentially weakened, according to reports.

In November, the United States Attorney’s office for the Eastern District in New York indicted Gautam Adani, who is the chairperson of the conglomerate, in a $265 million bribery and fraud case.

On Monday, six US Congressmen wrote to Bondi against allegedly questionable decisions taken by the US Department of Justice, including the indictment of Adani, under the previous Joe Biden administration.

“Some of these decisions involved selectively pursuing and abandoning cases, often acting against America’s interests at home and abroad, jeopardising relationships with close allies like India,” PTI quoted the lawmakers as having said in the letter.

The US Department of Justice had alleged that executives of the Adani Group participated in a scheme to bribe officials in India for solar energy contracts, then misrepresented the company’s anti-bribery practices to investors in the United States. The details of the alleged bribes were concealed to secure financing, the US Department of Justice claimed.

The Adani Group has denied the allegations and vowed legal action. In December, Gautam Adani blamed the press for what he described as “incorrect and reckless reporting” on the matter.

While the indictment document outlines conspiracy to obstruct justice and violations of the Foreign Corrupt Practices Act, Adani and his executives were not charged on these counts.

The indictment document does, however, name Gautam Adani, his nephew Sagar Adani and Cyril Cabanes of Azure Power Global in what it describes as a “massive bribery scheme”.

On November 27, the Adani Group said in a stock exchange filing that Gautam Adani and Sagar Adani had been charged in the US for securities fraud, not bribery.

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The charges had hurt the group’s market value with shares falling by $54 billion at the time.

Credit rating agency Moody’s had on November 26 downgraded the outlook for Adani firms to “negative”. It’s partner, the French company TotalEnergies, paused investments in the conglomerate citing legal uncertainties.

Adani Green Energy also withdrew $600 million in green bonds launched the same day the indictment was issued, citing investor protection concerns.

In January, the Sri Lankan government revoked a power purchase agreement with the Adani Group following the US investigation into bribery and fraud allegations against Gautam Adani.

The Union government said on November 29 that it views the developments relating to the indictments as a legal matter involving private companies, individuals and the US Department of Justice.

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