The United States Securities and Exchange Commission (SEC) has alleged that Gautam Adani personally met with the former Chief Minister of Andhra Pradesh, Jagan Mohan Reddy, in August 2021.
Claims are that Adani discussed the matter of power supply agreement and incentives needed to make the state government enter into a deal for purchase of 7,000 MW of power.
The SEC has alleged that Adani promised or paid bribes totaling approximately USD 200 million to Andhra Pradesh officials to facilitate the agreement.
Prosecutors claim these discussions were part of a broader scheme where Adani and co-conspirators used electronic communications to coordinate efforts to influence government officials.
Jagan Reddy and the YSR Congress Party have, however, denied the allegations.
YSRCP has said that it had no direct agreement with the Adani Group and the agreement signed in 2021 was between the SECI and power distribution companies (Discoms).
In a post on X, YSRCP said the seven gigawatts power procurement was approved by the Andhra Pradesh Electricity Regulatory Commission in November 2021. Following it, an agreement was signed on December 1, 2021, between SECI and AP Discoms.
In a criminal indictment filed in New York court, the US prosecutors have accused Gautam Adani of bribery and fraud.
The documents, reportedly, mention that a major chunk of bribery went to an Andhra Pradesh government official, identified as “Foreign Official #1” in the indictment.
Key allegations
The allegations suggest a meeting between Gautam Adani and then-Andhra Pradesh Chief Minister Jagan Mohan Reddy in 2021, as well as subsequent agreements involving the Solar Energy Corporation of India (SECI).
As per the indictment document, “The bribe to Andhra Pradesh for the power supply agreement was significantly larger than the Odisha power supply agreement…. Statements made by Adani Green executives indicate that the Andhra Pradesh bribe payment was approximately 200 million.”
Timeline of events:
August 7, September 12 and November 20, 2021: Gautam Adani met with foreign officials in Andhra Pradesh with an intention to persuade the state government to execute the power supply agreement (PSA).
October 28, 2021: The Andhra Pradesh Cabinet approved the proposal to procure 7,000 MW of solar power from SECI. Within three months, the state Electricity Regulatory Commission (APERC) approved the procurement plan.
December 1, 2021: The tripartite PSA was formalised between AP Green Energy Corporation Ltd. (APGECL, later renamed APRAPSCOM), SECI and the state government.
December 20, 2021: Claims surfaced that the agreement violates the Electricity Act by bypassing competitive bidding. CPI State Secretary K Ramakrishna had filed a Public Interest Litigation (PIL), along the same line.
May 4, 2022: Telugu Desam Party leader Payyavula Keshav challenged the agreement in court, arguing the agreed price of ₹2.49 per unit was significantly higher than market rates.
March 6, 2024: The High Court directed APERC to review the agreement and hold public hearings.
April 12, 2024: APERC approved the agreement, subject to the outcome of the pending PILs.
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