With the ruling BJP-led government having amended the Prevention of Corruption (PCA) Act in 2018 to include punishment for bribe givers as well as bribe takers, legal experts believe the US indictment order against industrialist Gautam Adani makes it imperative for Indian investigating agencies to examine the evidence to establish whether it breaches Indian laws.

According to senior advocate and eminent lawyer Sidharth Luthra, the US prosecutors have convinced the grand jury that they have enough evidence for a trial. “It is up to the Indian authorities now to ask the US Securities and Exchange Commission (SEC) and the US Department of Justice for details. The evidence will need to be examined before a preliminary investigation is initiated,” Luthra told businessline.

Bribe Accountability

The Government had tightened the PCA in 2018 to make it amply clear that persons are liable for a fine or imprisonment of seven years for offering bribes to public servants. Currently, PCA, which is a central law, is enforced by the Central Bureau of Investigation (CBI) for Central government employees and by the Anti Corruption Bureau (ACB) for State level officers.

According to Sonam Chandwani, Managing Partner KS Legal & Associates, the Adani bribery allegations present an opportunity for India to critically evaluate the intersection of corporate influence and governance integrity.

Independent probe

“In the Adani bribery case, the Indian government must immediately initiate an independent investigation involving the CBI for central officials and the Anti-Corruption Bureau for state officials under the Prevention of Corruption Act. Given the involvement of international allegations, the government should collaborate with the US SEC and DOJ to access evidence, ensuring the probe addresses both domestic and cross-border dimensions,” said Sonam Chandwani, Managing Partner KS Legal & Associates.

Amarjit Chopra, former President of the CA Institute, said that if the US Securities and Exchange Commission (SEC) and US Department of Justice have charged somebody, the Government of India must look into it.

“This is a serious allegation that Indian government officials have been bribed. To set the record straight, the government must find if it is true or false”, Chopra said. “US SEC is a respected body. The government is duty-bound to conduct an inquiry and come out clean on its Government officials. There is a precedent to this and it is not the first time such inquiry will be made,” Chopra said. 

With inputs from Dalip Singh