Indictment of Adani: Former A.P. CM bribed with ₹1750 crore in a power deal, alleges U.S. SEC

USSEC accuses Adani Group of bribing Andhra Pradesh officials in $265 million solar power deal scandal.

The Power Supply Agreements (PSAs) by Andhra Pradesh’s electricity distribution companies are under scanner in the $265 million bribery case unearthed by the U.S. The indictment statement by the U.S. Securities and Exchange Commission (USSEC) has accused the Adani Group of bribing former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy among other officials.

The USSEC has alleged in its accusation that the power distribution companies in Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh and Andhra Pradesh have entered into PSAs with Solar Energy Corporation of India (SECI) under manufacturing project between July 2021 and February 2022. Then the A.P. State agreed to buy 7 gigawatts of solar power, the largest amount in any State in India.

In August 2021, Gautam Adani met with the Chief Minister of A.P., about the fact that the State had not entered into a Power Supply Agreement with SECI and the “incentives” needed to cause Andhra Pradesh to do so, stated SEC.

“Sagar Adani had a subsequent meeting with the Chief Minister on September 12, 2021. Post these meetings, the Adanis (Gautam and Sagar) paid or promised a bribe to AP government officials to cause the relevant Andhra Pradesh government entities to enter into PSAs with SECI for the purchase of 7,000 MW of power capacity. Adani Green’s records and later statements by Adani Green executives to the Azure Chairman indicated that the AP bribe payment was approximately $200 million (₹1,750 crore). Shortly after these meetings, Andhra Pradesh agreed in principle to execute a PSA with SECI that would directly benefit Adani Green and Azure” the SEC stated.

Within a couple of weeks, the A.P. government was quoted as saying, “In the Cabinet meeting held last month, it was decided to accept SECI’s offer. After deliberation, the State decided to tap 7,000 MW in the first phase.”

The Adani Group, however, has denied the indictment charges as a baseless allegation. Responding to the email from The Hindu, the company spokesperson stated, “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, “The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.”

The company further stated, “All possible legal recourse will be sought. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws.”