The United States Securities and Exchange Commission (SEC) has accused industrialist Gautam Adani of offering a Rs 1,750 crore bribe to Andhra Pradesh officials in 2021. The alleged bribe was reportedly discussed during a meeting between Adani and then Andhra Pradesh Chief Minister Jagan Mohan Reddy, as revealed in court filings by the SEC.
The alleged bribe aimed to address Andhra Pradesh’s initial hesitation to enter into an agreement with the government-run Solar Energy Corporation of India (SECI) for procuring solar power. Shortly after the August 2021 meeting, Andhra Pradesh agreed to purchase seven gigawatts of solar power, marking the largest solar power procurement by any Indian state at the time.
SEC Allegations Against Adani Group
The SEC filings allege that Adani Group and another company, Azure Power, conspired to pay bribes to various state officials, enabling them to secure lucrative power supply contracts. Between 2021 and 2023, Adani reportedly paid USD 265 million in bribes to state electricity distribution companies in Andhra Pradesh, Tamil Nadu, Chhattisgarh, Odisha, and Jammu and Kashmir.
The SEC further detailed that SECI had awarded tenders for 12 gigawatts of solar-generated electricity to Adani Group and Azure Power in 2020. However, SECI struggled to find buyers due to high prices. The alleged bribes were reportedly used to overcome this hurdle, facilitating agreements between SECI and state governments.
YSRCP Denies Allegations
The YSR Congress Party (YSRCP), led by Jagan Mohan Reddy, refuted the claims, stating that the Andhra Pradesh government had no direct dealings with the Adani Group. The party clarified that the agreement signed in 2021 was between SECI and Andhra Pradesh’s power distribution companies (Discoms).
“The allegations made on the state government in light of the indictment are incorrect,” YSRCP tweeted. The party also emphasized that the seven-gigawatt power procurement deal was approved by the Andhra Pradesh Electricity Regulatory Commission in November 2021, with further endorsement by the Central Electricity Regulatory Commission.
Adani Group Responds
The Adani Group dismissed the allegations as baseless and announced plans to pursue legal action to challenge the claims. The conglomerate reiterated its commitment to ethical business practices and denied any wrongdoing in the matter.
Political Ramifications
The allegations come at a critical time, with political observers scrutinizing the relationship between prominent industrialists and state governments. As the case unfolds, it could potentially impact the political narratives in Andhra Pradesh and beyond.