Adani Group's US investment plans likely back on track thanks to Trump

The Adani Group is reportedly planning to revive its investment plans in the United States following policy changes under President Donald Trump, according to Financial Times. The ports-to-energy conglomerate, which had initially pledged $10 billion to various US infrastructure projects, had put those plans on hold after the US Department of Justice (DOJ) indicted founder Gautam Adani and seven other associates in an alleged bribery case.

However, recent developments, including the suspension of the Foreign Corrupt Practices Act (FCPA) enforcement in the US, may have renewed optimism within the group. According to the report, Adani Group has reactivated potential plans to fund projects in US sectors such as nuclear power and utilities as well as an east coast port.

Legal challenges that stalled Adani Group's US expansion

In November 2024, Adani Group's investments in the US hit a roadblock when Gautam Adani, along with seven others, was indicted on allegations of involvement in a $265 million bribery scheme. The indictment alleged that between 2020 and 2024, Adani and his co-defendants orchestrated a scheme involving the payment of $265 million in bribes to Indian government officials to secure solar energy contracts expected to generate more than $2 billion in profits. The US authorities accused Adani and his associates of misleading American investors and financial institutions by failing to disclose these practices while raising capital.

Among those named in the indictment are Sagar Adani, Gautam Adani’s nephew, and Vneet S Jaain, CEO of Adani Green Energy. The charges include conspiracy to commit securities and wire fraud, as well as substantive securities fraud. In addition to the DOJ’s criminal case, the US Securities and Exchange Commission (SEC) filed a parallel civil lawsuit against Adani and his associates, further accusing them of securities law violations. Recently, the SEC asked Indian authorities for help in its investigation of Adani Group over alleged securities fraud and the $265-million bribery scheme.

In response to the indictment, Adani Green Energy Ltd (AGEL) clarified that Gautam Adani, Sagar Adani, and Vneet Jaain were not charged with violations of the US Foreign Corrupt Practices Act (FCPA). Instead, they faced charges related to alleged securities fraud conspiracy, wire fraud conspiracy, and securities fraud. AGEL emphasised that the counts did not pertain to any FCPA violations.

This legal scrutiny compounded troubles stemming from an earlier controversy in 2023, when now-disbanded short seller Hindenburg Research accused Adani Group of stock manipulation and corporate fraud. The fallout from these allegations led to a steep decline in market valuation and caused some investors to distance themselves from the conglomerate.

Trump’s policies offer a possible lifeline

A major shift in US policy under President Trump may have contributed to Adani Group’s renewed interest in the American market. In early February 2025, Trump ordered a halt to FCPA enforcement, a move that industry observers believe could weaken the legal case against the Adani executives.

A source close to the group expressed relief, suggesting that the policy change heightened expectations that the charges might not hold up in court, the FT reported. While legal proceedings are ongoing, the change has created a more favourable environment for Adani Group to reconsider its US expansion plans. The company is now reassessing projects in key sectors, including nuclear energy, utilities, and port infrastructure on the East Coast, according to the FT report.

Six Republican congressmen recently wrote to US Attorney General Pam Bondi, questioning the Justice Department’s pursuit of Adani and his nephew. The lawmakers argued that such actions could harm US-India relations and discourage foreign investment in the American economy.

Despite the mounting pressure, there has been little visible progress in the investigations led by the Department of Justice (DoJ) and the Securities and Exchange Commission (SEC).

Financial and market setbacks post-Hindenburg Report

Before the US indictment, Adani Group had already faced significant financial turbulence due to the 2023 Hindenburg Research report, which alleged stock manipulation. The report led to an immediate loss of investor confidence, wiping billions from the conglomerate’s market capitalisation.

Internationally, the fallout from the allegations also placed strain on partnerships with global firms. For instance, TotalEnergies, a French energy giant and a significant investor in Adani’s renewable energy ventures, faced concerns about reputational risks associated with its collaboration with the Indian conglomerate.