Date: November 21, 2024
Adani U.S. Corruption Charges and Links to Jagan’s Power Deals
Adani Faces U.S. Corruption Charges
Indian billionaire Gautam Adani and seven others face corruption and fraud charges in the United States. This high-profile indictment claims the Adani Group bribed officials, particularly in Andhra Pradesh, to secure lucrative solar energy contracts. The U.S. prosecutors allege that these bribes defrauded American investors while Adani’s team manipulated financial data to obtain funds fraudulently.
Andhra Pradesh at the Center of the Allegations
The case focuses heavily on Andhra Pradesh, where Adani allegedly directed substantial bribes to secure Power Sale Agreements (PSAs). The charges indicate that from 2019 to 2024, “Foreign Official #1” in Andhra Pradesh received approximately ₹1,750 crore ($228 million) in bribes. This was part of an effort to ensure state electricity distribution companies (DISCOMs) signed agreements with Adani’s ventures.
Key Meetings Between Adani and Andhra Officials
The indictment highlights multiple meetings in 2021 between Gautam Adani and a senior Andhra Pradesh official. These interactions allegedly influenced the state’s decision to procure 2.3 GW of solar power from Adani Group. By December 2021, the Andhra Pradesh DISCOMs formalized this agreement, marking it as the largest solar power deal by any Indian state.
The Adani Mega Agreement with Andhra Pradesh
Beyond the PSA, the Group entered a high-profile partnership with Andhra Pradesh to develop transformative renewable energy projects. This agreement involved a 10,000 MW solar power project and a 3,700 MW pumped storage hydropower plant, promising ₹60,000 crore in investments and significant employment generation.
Code Names and Fraudulent Practices
The indictment reveals conspirators used code names such as “Numero Uno” to refer to Gautam . Additionally, they allegedly concealed fraudulent activities from lenders and investors to secure over $3 billion in loans for Adani Green Energy.
Global and Political Repercussions
Gautam Adani, Asia’s second-richest person with a net worth of $85 billion, has already faced significant backlash. The Hindenburg Research report in 2023 accused the Adani Group of stock manipulation and fraud, leading to substantial losses in Adani’s personal wealth.
The latest allegations tie Adani’s business dealings with Andhra Pradesh’s leadership under Chief Minister Y.S. Jagan Mohan Reddy. These claims have sparked widespread debates about political favoritism and corporate misconduct.
Opposition’s Stance and Public Outcry
The opposition has intensified its attacks on both Adani and the BJP-led central government. Allegations that Prime Minister Narendra Modi’s policies favor have gained traction, particularly after the Hindenburg report labeled Adani’s operations as “the largest con in corporate history.”
Conclusion
As Gautam faces corruption charges in the U.S., the alleged involvement of Andhra Pradesh in the scandal raises questions about governance and accountability. The unfolding case may significantly impact Group’s reputation and its ties with Indian political leadership.