Rs 1,750 crore bribe linked to Adani's 2021 meet with Jagan: US agency

The SEC alleges Gautam Adani paid a Rs 1,750 crore bribe in 2021 to secure Andhra Pradesh's solar power deal, sparking denials and political controversy

The United States Securities and Exchange Commission (SEC) has alleged that Gautam Adani, chairman of the Adani Group, met Andhra Pradesh Chief Minister Jagan Mohan Reddy in August 2021 to address the state’s hesitancy to sign an agreement with the government-run Solar Energy Corporation of India. Court filings by the SEC claim ‘incentives’ were discussed during the meeting to secure Andhra Pradesh’s participation, reported India Today.

 

The SEC has further mentioned, “At or in connection with that meeting, Gautam Adani paid or promised a bribe to Andhra Pradesh government officials” to finalise power supply agreements with Solar Energy Corporation of India. The indictment charges Adani with bribery and fraud, alleging a Rs 1,750 crore bribe was offered to an unnamed Andhra Pradesh official, referred to as ‘Foreign Official #1’.  

 

Shortly after the meeting, Andhra Pradesh signed on to purchase seven gigawatts of solar power from Solar Energy Corporation of India, making it the largest solar procurement deal by any state at the time.  

 

Allegations of widespread bribery   

The US SEC filing further accused the Adani Group of conspiring with Azure Power to pay $265 million in bribes to state electricity officials across multiple states, including Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir, between 2021 and 2023. The bribes allegedly facilitated power supply contracts after Solar Energy Corporation of India struggled to find buyers for the 12 gigawatts of solar electricity it awarded to Adani and Azure Power in 2020.  

 

YSRCP denies charges, TDP silent  

 

Jagan Mohan Reddy’s Yuvajana Sramika Rythu Congress Party (YSRCP) has strongly denied the allegations, saying that its government had no direct agreement with the Adani Group. The party stated that the power procurement deal in question was between Solar Energy Corporation of India and Andhra Pradesh’s power distribution companies.  

 

“The allegations made on the state government, in light of the indictment, are incorrect,” YSRCP said in a post on X. The party clarified that the Andhra Pradesh Electricity Regulatory Commission approved the seven-gigawatt procurement in November 2021, with the agreement between Solar Energy Corporation of India and AP Discoms being signed on December 1, 2021.  

 

YSRCP also emphasised that the deal was also approved by the Central Electricity Regulatory Commission and offered significant benefits to the state. According to the party, Solar Energy Corporation agreed to supply solar power at Rs 2.49 per kWh for 25 years, resulting in estimated savings of Rs 3,700 crore annually for Andhra Pradesh.  

 

Meanwhile, the Telugu Desam Party (TDP), now the ruling party, has refrained from commenting on the allegations. TDP spokesperson Kommareddy Pattabhiram said, “We need to study the report before coming to a conclusion. It would take two to three days.”