The United States Securities and Exchange Commission has alleged that billionaire tycoon Gautam Adani met then-Andhra Pradesh chief minister YS Jagan Mohan Reddy in August 2021.
The meeting was about the fact that the southern state had not entered into a power supply agreement with the Solar Energy Corporation of India (SECI) and the “incentives” needed to cause Andhra Pradesh to do so, the indictment order filed before the District Court, Eastern District of New York claimed.
SECI is a public sector entity and arm of the Indian government responsible for implementing Centre schemes related to renewable energy, including funding large solar projects.
According to the order, Gautam Adani allegedly paid or promised a bribe to the Andhra government officials to “cause the relevant Andhra Pradesh government entities to enter into Power Supply Agreements with SECI for the purchase of 7,000 MW of power capacity.”
The US market regulator alleged that the bribe to Andhra Pradesh for the power supply agreement was “significantly larger” than the Odisha Power Supply Agreement.
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The US SEC alleged that the bribe payment to Andhra government was approximately $200 million, consistent with Adani Green’s internal records.
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After Adani’s meeting with the then Andhra CM and payment or promise to pay bribes to the officials, Adani Green and Azure’s internal communications showed that the state agreed to buy power from the SEC, the report alleged.
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The US authorities have alleged that Andhra Pradesh agreed “in principle” to execute a power supply agreement with the SECI that would “directly benefit Adani Green and Azure”.
Within weeks, as the report claims, the Andhra Pradesh government was publicly 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.”
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“In other words, the bribes paid or promised worked,” the report added.
Adani Group rejects allegations
The Adani Group rejected allegations by the US authorities.
“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,” the conglomerate said in a statement.
“All possible legal recourse will be sought,” it added.