Experts warn ofsevere legal fallout. for Adani group and associates

The charges against Gautam Adani and others, as announced by the US Securities and Exchange Commission (SEC), involve serious allegations of securities and wire fraud, as well as violations of the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (FEPA). Experts and lawyers explained the details of these provisions as well as their implications.

- BHAVINI MISHRA

Under US law, particularly in cases involving multiple counts of conspiracy, securities fraud, wire fraud, and obstruction of justice, legal proceedings typically begin with an indictment, formally charging the defendants with the alleged crimes.

Under US law, particularly the FCPA, an indictment of this nature constitutes a serious offence, potentially leading to severe consequences such as arrest, monetary penalties, and custodial sentences.

The FCPA explicitly prohibits the payment of bribes to foreign officials to obtain or retain business advantages, and its extraterritorial reach allows for the prosecution of foreign nationals if their actions have a demonstrable connection to US commerce or financial systems.