Adani Allegedly Promised Bribes to Jagan Reddy for Solar Agreement: SEC
The SEC claims Gautam Adani promised bribes to Andhra Pradesh officials, including Jagan Reddy, in 2021 to secure SECI's 7GW solar deal. The $265M bribery scheme spanned several states. Adani denies allegations, calling them baseless.
The United States Securities and Exchange Commission has accused the chairman of the Adani Group, Gautam Adani, of offering bribes to the Solar Energy Corporation of India. In a filing with the SEC, Adani had met with then Andhra Pradesh Chief Minister Jagan Mohan Reddy in August 2021 over the state's refusal to sign an agreement with SECI.
The SEC claims Adani discussed "incentives" during the meeting and bribed Andhra Pradesh government officials to seal the deal. Although the filing doesn't disclose the amount of bribe, a U.S. Justice Department indictment mentioned ₹1,750 crore to unnamed Andhra Pradesh official, referred to as Foreign Official #1.
Adani's Solar Deal and Alleged Bribes
The meeting apparently prompted Andhra Pradesh to agree to buy 7 gigawatts of solar power from SECI-the biggest solar power procurement by any state then. "In other words, the bribes paid or promised worked," the SEC was quoted as saying, for Andhra Pradesh signed the agreement soon after the meeting.
SECI had granted tenders to Adani Group and Azure Power in 2020 to sell 12 gigawatts of solar electricity, but high prices had deterred buyers. Investigators claim that Adani and Azure colluded to pay $265 million in bribes between 2021 and 2023 in order to get contracts with state electricity boards in Andhra Pradesh, Tamil Nadu, Odisha, Chhattisgarh, and Jammu & Kashmir.
Adani Group Denies Allegations
Adani Group has dismissed the allegations made by the SEC and called them "baseless." A spokesperson said that the group intends to take legal action to negate the charges and stated that it believed Adani Green Energy had a proper anti-bribery compliance program.
YSRCP Reacts; No Reaction from TDP
The YSR Congress Party (YSRCP), led by Jagan Reddy, denied any agreement between the Andhra Pradesh government and the Adani Group directly. On X, the party stated that the SECI agreement was approved by the Central Electricity Regulatory Commission and signed between SECI and state power distribution companies (Discoms) in December 2021.
It defended the deal, saying that bringing in solar power at ₹2.49 per kWh will save Andhra Pradesh ₹3,700 crore annually.
Telugu Desam Party (TDP) said it would take time to study the report of the SEC and remained mum on this issue.
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