November 26, 2024: The Andhra Pradesh government is reviewing its controversial power supply contract with the Adani Group in light of recent bribery allegations tied to the conglomerate. A report from Reuters has revealed that the state is examining government files to assess the possibility of canceling the deal, following a major indictment in the United States.
The U.S. Department of Justice recently charged Adani Group Chairman Gautam Adani and seven others with offering bribes totaling USD 265 million (approximately Rs 2,029 crore) to Indian officials to secure lucrative contracts, including in Andhra Pradesh. The bribes, reportedly paid between 2021 and 2024, were allegedly aimed at securing solar power contracts across several Indian states, including Odisha, Tamil Nadu, Chhattisgarh, Jammu and Kashmir, and Andhra Pradesh.
Finance Minister Payyavula Keshav confirmed that the Andhra Pradesh government is scrutinizing all internal files related to the deal. "We are digging into all the internal files, and we will also examine what can be done next, like whether there is a possibility to cancel the contract," Keshav told Reuters, stressing that the issue is being taken seriously.
The bribery scandal centers on the allegation that around USD 228 million (Rs 1,750 crore) was promised to influence the state's electricity distribution companies to procure solar power from Adani Group. A key detail in the case involves a meeting in August 2021 between Gautam Adani and Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy, where "incentives" for securing the deal were reportedly discussed. While the U.S. Securities and Exchange Commission (SEC) did not specify the exact bribe amount, the indictment named an unnamed Andhra Pradesh official (Foreign Official #1) as the recipient of the alleged bribe.
This development raises further questions about the transparency and integrity of the power contracts secured during the tenure of the YSR Congress Party, which has been under scrutiny since the revelation of these serious allegations. The Andhra Pradesh government now faces mounting pressure to act on the findings and reconsider the terms of its engagement with the Adani Group.