In a landmark development, the United States Department of Justice (US DOJ) has filed charges against Indian billionaire Gautam Adani, along with senior executives of the Adani Group, alleging their involvement in a $265 million bribery scheme. The charges accuse the Adani Group of conspiring to bribe Indian government officials to secure lucrative solar energy contracts through the Solar Energy Corporation of India Ltd (SECI), a public sector undertaking under India’s Ministry of New and Renewable Energy.
The Allegations
According to the US DOJ’s filing in a U.S. court, the bribery scheme involved Gautam Adani, Sagar Adani, Vneet Jaain, and others working in concert with a U.S.-based company. The allegations center around SECI’s award of manufacturing-linked tenders between December 2019 and July 2020, under which the Adani company was tasked with supplying eight gigawatts of solar power. SECI, in turn, was responsible for finding state electricity distribution companies (discoms) to purchase this power.
However, the high prices quoted in the Letters of Award (LOAs) reportedly made it difficult for SECI to secure buyers among the state discoms, jeopardizing the contracts. This led to the alleged scheme to offer bribes amounting to approximately ₹2,209 crores (US $265 million) to Indian officials to facilitate Power Sale Agreements (PSAs).
Key Accusations
The indictment alleges that approximately ₹1,750 crores (US $228 million) was offered to a single official to secure Andhra Pradesh’s agreement to purchase seven gigawatts of solar power—the largest allocation among Indian states. Following these alleged bribes, discoms from Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh, and Andhra Pradesh entered into PSAs with SECI between July 2021 and February 2022.
With these agreements in place, SECI could then enter into Power Purchase Agreements (PPAs) with the Adani Group’s subsidiaries and the U.S.-based company to purchase solar power for these states.
Court Statements
The US DOJ filing claims:
“Following the promise of bribes to Indian government officials, in or about and between July 2021 and February 2022, electricity distribution companies for the states and regions of Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh, and Andhra Pradesh entered into PSAs with SECI under the Manufacturing Linked Project.”
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani, and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated United States Attorney Peace.
The allegations also include violations of the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (FEPA), with claims that the Adani Group misrepresented anti-bribery practices to U.S.-based investors while concealing their activities.
Deputy Assistant Attorney General Miller emphasized the gravity of the charges:
“These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors.”
Adani Green’s Denial
In response, Adani Green Energy Ltd issued a statement rejecting the allegations, asserting that the charges are “baseless” and emphasizing the presumption of innocence until proven guilty.
“All possible legal recourse will be sought,” said a spokesperson for Adani Green.
Global Implications
The case has raised significant questions about corporate governance, international anti-corruption laws, and the interplay between business and government in India. With the involvement of U.S. laws and regulatory bodies, the proceedings could have far-reaching consequences for the Adani Group and its global reputation.
This unfolding saga will be closely watched, with the stakes high for both the Adani Group and the broader solar energy sector in India.
