Adani Group accused of bribery in solar power deal; Andhra Pradesh denies allegations
PTC Web Desk: The United States Securities and Exchange Commission (SEC) has accused Gautam Adani of bribing Andhra Pradesh officials during a 2021 meeting with the then Chief Minister Jagan Mohan Reddy. The meeting aimed to address the state’s hesitation in signing a solar energy procurement agreement with the Solar Energy Corporation of India (SECI).
SEC filings allege that Gautam Adani offered or promised a bribe of Rs 1,750 crore to an unnamed Andhra Pradesh official, referred to as “Foreign Official #1,” to finalise the deal. Soon after this meeting, Andhra Pradesh agreed to purchase seven gigawatts of solar power from SECI, marking the largest solar power procurement by any state in India.
The SEC further claims that the Adani Group and Azure Power conspired to offer bribes to various state officials after SECI struggled to find buyers due to high solar power tariffs. Investigators allege that the Adani Group paid $265 million in bribes to secure contracts with state electricity distribution companies across multiple states, including Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir, between 2021 and 2023.
The Adani Group has called the allegations baseless and announced plans to take legal action against the claims.
Jagan Mohan Reddy’s YSR Congress Party (YSRCP), which was in power in Andhra Pradesh from 2019 to 2024, refuted the accusations. The party clarified that the state government had no direct dealings with the Adani Group, as the 2021 agreement was between SECI and Andhra Pradesh’s power distribution companies (Discoms).
In a statement, YSRCP said the deal was approved by the Andhra Pradesh Electricity Regulatory Commission (APERC) in November 2021 and formalised on December 1, 2021. The Central Electricity Regulatory Commission also cleared the agreement. Under the terms, SECI was to supply seven gigawatts of solar power at Rs 2.49 per kWh for 25 years, which the party claimed would save the state Rs 3,700 crore annually.
The party asserted that the project was in the state’s best interest, providing affordable power while reducing dependency on traditional energy sources.
- With inputs from agencies
