The US Securities and Exchange Commission (SEC) has accused Indian billionaire Gautam Adani of paying bribes to Indian officials to secure a massive solar power deal in Andhra Pradesh. The indictment alleges that Adani met with the state’s chief minister and offered significant “incentives” to secure the deal.
By PC Bureau
The United States Securities and Exchange Commission (SEC) has claimed that billionaire tycoon Gautam Adani met with the then-Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, in August 2021. According to the indictment filed with the District Court in the Eastern District of New York, the meeting revolved around the issue that the southern state had not yet entered into a power supply agreement with the Solar Energy Corporation of India (SECI) and the “incentives” needed to facilitate Andhra Pradesh’s agreement to do so.
SECI is a government-owned entity responsible for executing the Indian government’s renewable energy programs, including funding large-scale solar energy projects. The SEC’s order alleges that Adani either paid or promised to pay a bribe to officials in Andhra Pradesh to influence the state government to enter into power supply agreements with SECI for the purchase of 7,000 MW of power capacity.
The US market regulator further asserts that the bribe intended for Andhra Pradesh’s involvement in the power supply agreement was “significantly larger” than the one associated with the Odisha Power Supply Agreement. According to the SEC’s allegations, the bribe to the Andhra Pradesh government amounted to approximately $200 million, which aligns with Adani Green’s internal records.
The report also mentions that Adani’s meeting with the Andhra CM and the subsequent payment or promise of bribes to government officials were supported by internal communications from Adani Green and Azure. These communications indicated that the state agreed to purchase power from SECI. The SEC claims that the Andhra Pradesh government had agreed “in principle” to enter into a power supply agreement with SECI that would have benefited Adani Green and Azure directly.
Within weeks of the meeting, the Andhra Pradesh government was reportedly 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 report further stated, “In other words, the bribes paid or promised worked.”
In response to the allegations, the Adani Group has denied the claims made by US authorities. The conglomerate issued a statement stating, “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied.” It further affirmed, “All possible legal recourse will be sought.”
YSR Congress refutes charge:
Meanwhile, the YSR Congress Party, led by former Chief Minister Jagan Mohan Reddy, has denied any direct agreement between the Andhra Pradesh government and the Adani Group. In response to the recent indictment of Adani Group by the US Department of Justice for allegedly paying bribes to secure solar power contracts, the party clarified that the power sale agreement in question, signed in 2021, was between the Solar Energy Corporation of India Ltd (SECI) and the AP Discoms, not the state government.
The party’s statement highlighted that the approval for the procurement of 7,000 MW of power was granted by the Andhra Pradesh Electricity Regulatory Commission in November 2021, following which the Power Sale Agreement (PSA) was signed on December 1, 2021, between SECI and AP Discoms.
Adani and seven others, including his nephew Sagar, have been charged by the US Department of Justice for allegedly bribing unidentified state officials in Andhra Pradesh and Odisha. The bribes were allegedly paid to secure overpriced solar power contracts, which could result in over USD 2 billion in profit over the next 20 years. The US Attorney’s Office has stated that Adani met personally with government officials in 2021 and 2022, offering bribes to finalize the power sale agreements with SECI, during the period when YSR Congress was in power in the state.
