The U.S. Securities and Exchange Commission (SEC) has filed court documents alleging that Gautam Adani met with then-Andhra Pradesh Chief Minister Jagan Mohan Reddy in August 2021 to discuss “incentives” for securing a solar power agreement. The meeting reportedly addressed the state’s initial reluctance to sign a contract with the Solar Energy Corporation of India (SECI).
Gautam Adani met Jagan Reddy in 2021
According to the U.S. Justice Department’s indictment, which charges Adani with bribery and fraud, approximately Rs 1,750 crore was allegedly offered to an unnamed Andhra Pradesh government official, referred to as “Foreign Official #1.”
Shortly after the meeting, Andhra Pradesh agreed to purchase seven gigawatts of power from SECI, marking the largest solar power procurement by any Indian state at that time.
What is the Adani Bribery case all about?
The case stems from a 2020 tender awarded to the Adani Group and Azure Power by SECI for supplying 12 gigawatts of solar-generated electricity. When SECI struggled to find buyers due to high prices, U.S. investigators allege that Adani and Azure conspired to offer bribes to state officials.
The total alleged bribes amount to USD 265 million, distributed between 2021-2023 to secure contracts across multiple states including Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir.
Jagan Reddy’s party denies allegations
Jagan Reddy’s YSRCP party has denied the allegations, stating, “The allegations made on the state government, in the light of the indictment are incorrect.” The party emphasized that their government had no direct agreement with the Adani Group, noting that the deal was between SECI and state power distribution companies.
YSRCP detailed that the seven-gigawatt power procurement received approval from the Andhra Pradesh Electricity Regulatory Commission in November 2021, with the final agreement signed on December 1, 2021.
The party defended the deal’s legitimacy, citing its approval by the Central Electricity Regulatory Commission and highlighting its favourable terms: Rs 2.49 per kWh for 25 years, potentially saving the state Rs 3,700 crores annually.
Adani Group also scraps US’s charges
The Adani Group has dismissed the allegations as “baseless” and announced plans for legal action. Meanwhile, the opposition Telugu Desam Party (TDP) has reserved comment, with spokesperson Kommareddy Pattabhiram stating, “We need to study the report before concluding. It would take two to three days.”
The SEC filing also noted that Adani allegedly misrepresented his company’s anti-bribery compliance program and denied any involvement in bribery by senior management.
