As the ruling BJP-led government has amended the Prevention of Corruption Act (PCA) in 2018 to include punishment for bribe givers as well as bribe takers, legal experts believe that the US indictment against industrialist Gautam Adani makes it imperative for Indian investigative agencies to look into the evidence of to determine whether it violates Indian laws.

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

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Bribe responsibility

The government had toughened the PCA in 2018 to make it clear that people can be fined or jailed for seven years for offering bribes to public officials. Currently, the PCA, which is a central law, is enforced by the Central Bureau of Investigation (CBI) for government employees and by the Anti Corruption Bureau (ACB) for government level officials.

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.

• Read also: Here is a timeline of the allegations against Adani starting with the Hindenburg accusation from 2023

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 cooperate with the US SEC and DOJ to access evidence, to ensure that 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 the US Department of Justice have charged anyone, 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 needs to find out whether it is true or false,” Chopra said. “The US SEC is a respected body. The government is obliged to conduct an investigation and come clean about its government officials. There is a precedent for this and it is not the first time that such an investigation will be done, says Chopra.

With inputs from Dalip Singh