Hyderabad: The US Department of Justice (DOJ) unveils an alleged scheme involving bribery Gautam Adani and other senior executives of the Adani Group, accusing them of bribing Indian government officials to the tune of $250 million (Rs. 2,029 crore).
The bribes reportedly facilitated solar contracts Manufacturing related projects (MLP), Andhra Pradesh became the focus of investigation. According to the indictment unsealed in the Eastern District of New York, the bribes were allegedly intended to secure power sales agreements (PSAs) for state distribution companies (DISCOMs), specifically in the state of Andhra Pradesh.
The Andhra Pradesh government signed an agreement with Solar Energy Corporation of India at the time and not directly with the Adani Group.
Foreign official No. 1, identified as a senior official in Andhra Pradesh between May 2019 and June 2024, is said to have received promised payments of approximately 1,750 crore rupees ($228 million). Orissa, Chhattisgarh, Tamil Nadu, Jammu and Kashmir were also named in the US indictment.
The indictment details multiple meetings in Andhra Pradesh where Gautam Adani personally interacted with Foreign Official No. 1 to advance the agreement.
These meetings will be held on August 7, September 12, and November 20, 2021 respectively. Agreed to purchase 2.3 GW of solar power – the largest purchase by any Indian state.
Subsequently, SECI signed corresponding power purchase agreements (PPA) with Adani Group subsidiaries and US issuers, committing to purchase solar energy for states such as Andhra Pradesh. Prosecutors allege that the scheme generated huge profits for Adani-related entities while misleading U.S. investors through fraudulent compliance and anti-corruption measures.
The DOJ indictment alleges that Andhra Pradesh signed some of the largest public service agreements under manufacturing-linked projects and promised to pay bribes to secure these agreements. Adani executives reportedly documented discussions and plans through electronic messages and internal presentations detailing bribe amounts and methods for concealing payments.
The accusations triggered significant political and financial fallout.
Adani Group, already facing global scrutiny, is now facing additional pressure on transparency from renewable energy companies. “The defendants orchestrated an elaborate scheme to bribe Indian government officials to obtain billions of dollars in contracts and lied to investors and banks,” said Breon Peace, U.S. Attorney for the Eastern District of New York. “This office is committed to Rooting Out Corruption in International Markets. Deputy Assistant Attorney General Lisa H. Miller added: “These crimes allegedly harmed the United States through corruption and fraud in financing massive national energy contracts. investors’ interests. “
SECI’s role in Adani Green Deal
It is important to clarify the nature of the agreements involving the Adani Group and state power distribution companies alleged by the US Department of Justice (DOJ).
The Andhra Pradesh government and other states such as Odisha, Jammu and Kashmir, Tamil Nadu and Chhattisgarh do not have any power purchase agreement (PPA) directly with Adani. Instead, these states have entered into power sales agreements (PSAs) with the Solar Energy Corporation of India (SECI) as part of manufacturing-related projects.
Under the arrangement, SECI purchases solar power from Adani’s subsidiaries and other entities through power purchase agreements (PPAs) and then sells the power to state power distribution companies, including those in Andhra Pradesh.
Charges in the DOJ indictment allege that bribes were promised (but not paid) to facilitate these agreements, allegedly benefiting Adani’s companies by ensuring SECI executed power purchase agreements for large solar projects. Andhra Pradesh is one of several states that has entered into an agreement with SECI under this framework.
The clarification emphasized that the alleged bribery related to SECI’s procurement process with Adani entities and not directly to state-level agreements. The charges indicate a bribery scheme designed to benefit Adani’s companies by influencing SECI’s contracting decisions.
