Adani bribery case: Andhra minister says checking if power deals can be scrapped

Adani Bribery Case: The development comes in the wake of bribery and fraud charges against Adani Group chairperson Gautam Adani and his associates by US prosecutors.

In Short

• Andhra reviewing government files related to power supply deal
• US prosecutors have accused Adani of bribery and securities fraud
• US alleges bribes were paid to Andhra officials to obtain contracts

Andhra Pradesh is reviewing government files to explore the possibility of scrapping a power supply contract linked to the Adani Group, Reuters reported. The development comes in the wake of a New York court indicting Adani Group chairperson Gautam Adani and seven others for promising USD 265 million (Rs 2,029 crore) in bribes to states, including Andhra Pradesh, to obtain contracts.

Finance Minister Payyavula Keshav told Reuters that the government was "digging into all the internal files" related to the deal, which was signed during the previous Jagan Mohan Reddy-led YSR Congress administration.

"We will also examine what can be done next, like is there a possibility to cancel the contract," Keshav said, while asserting that the government was looking into the issue closely.

The US indictment mentions that the bribes were paid to Indian officials between 2021 and 2024 to secure solar power contracts in Odisha, Tamil Nadu, Chhattisgarh, Andhra Pradesh and Jammu and Kashmir.

Of the USD 265 million, around USD 228 million was allegedly paid to influence Andhra Pradesh's state electricity distribution companies to purchase solar power. In fact, the United States Securities and Exchange Commission (SEC) has alleged that "incentives" were discussed to secure the agreement in a meeting between Gautam Adani and Jagan Mohan Reddy in August 2021.

While the SEC does not mention the bribe amount promised, the indictment by the US Justice Department mentioned that a Rs 1,750 crore (USD 228 million) bribe was promised to an unnamed Andhra Pradesh government official (Foreign Official #1).

Following the meeting with the then Chief Minister, an agreement to purchase 7 gigawatts of solar power -- the largest by any state -- was signed.

The Adani Group has denied the allegations, calling them baseless. The YSR Congress Party, which was in power between 2019-2024, also denied any wrongdoing, emphasising that its government had no "direct agreement" with the Adani Group.