Adani Group bribery scandal: Focus shifts to Gautam Adani’s investments in Andhra, Telangana

Amaravati: Billionaire Gautam Adani has been charged by US prosecutors for allegedly paying USD 250 million in bribes to Indian officials in exchange for favorable terms for solar power contracts.

According to the indictment by a US court, a high-ranking official from Andhra Pradesh (most likely a politician in power from 2019 to 2024) is the main one named, termed as Foreign Official #1

Prosecutors claim that the Adani Group concealed this from US banks and investors while raising billions of dollars for its renewable energy projects. Adani, India's second-richest man, and seven others including his nephew Sagar have been charged with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than USD 2 billion profit over 20 years.

According to the indictment, the defendants—including Adani’s nephew Sagar Adani—allegedly paid the bribes between 2020 and 2024 to secure solar energy contracts projected to generate over $2 billion in profits over 20 years. The renewable energy company is accused of raising over $3 billion in loans and bonds during this period by making false and misleading statements.

The indictment alleges Gautam Adani was referred to in private as "Numero Uno" and "The Big Man," while Sagar Adani reportedly used his cellphone to monitor bribe-related details. It further outlines that conspirators discussed the scheme extensively through electronic messaging platforms and documented their activities. For example, Sagar Adani tracked bribe specifics on his phone, while Vneet Jaain reportedly photographed a document summarizing the bribe amounts. Another conspirator, Rupesh Agarwal, created detailed analyses of bribe payments and methods to conceal them using PowerPoint and Excel.

A high-ranking official from AP is the main one named:

According to the indictment by a US court, a high-ranking official from Andhra Pradesh (most likely a politician in power from 2019 to 2024) is the main one named.

The foreign Official was a citizen of India who resided in India. From approximately May 2019 through June 2024, Foreign Official #1 served as a high-ranking government official of Andhra Pradesh, India. Foreign Official #1 was a "foreign official," as that term is used in the FCPA, Title 15, United States Code, Sections 78dd-1(f)(1)(A) and 78dd-3((2)(Ą).

As per the Indictment, Adani has personally met with Foreign Official in Andhra Pradesh to advance the execution of a PSA between SECI and Andhra Pradesh's state electricity distribution companies, including on or about August 7, 2021, on or about September 12, 2021 and on or about November 20, 2021.

"Gautam Adani, Sagar R Adani, Vineet S Jaain and others had offered and promised to Indian government officials approximately 2,029 crore rupees (approximately $265 million)2 in bribes in exchange for Indian government officials causing the state electricity distribution companies to execute PSAs under the Manufacturing Linked Project, which would benefit the Indian Energy Company's subsidiaries and the U.S. Issuer. Approximately 1,750 crore rupees (approximately $228 million) of the corrupt payments was offered to Foreign Official in exchange for Foreign Official causing Andhra Pradesh's state electricity," read the Indictment.

The Chhattisgarh State Power Distribution Company Limited, Tamil Nadu Generation and Distribution Corporation Limited, GRIDCO Limited, Jammu Kashmir Power Corporation Limited, Andhra Pradesh Central Power Distribution Corporation Limited, Andhra Pradesh Eastem Power Distribution Company Limited and Andhra Pradesh Southern Power Distribution Company Limited (collectively, the "State Distribution Companies") were electricity distribution companies in India that were state-owned and state-controlled and performed functions that the state governments in India treated as their own. The State Distribution Companies were "instrumentalitics" of the Indian govemnment, and their officers and employees were "foreign officials,"' as those terms are used in the FCPA, Title 15, United States Code, Sections 78dd-1(0)(1)(A) and 78dd-3(f)(2)(A),

Adani’s investments in Andhra Pradesh

In 2022, the Adani Group signed a memorandum of understanding (MoU) to invest ₹60,000 crore in Andhra Pradesh, including a 10,000 MW solar power project and a 3,700 MW pumped hydro solar project. The investment, announced after Jagan Mohan Reddy met with Gautam Adani at Davos, is expected to create approximately 10,000 jobs.

By 2023, the Adani Group had committed to developing 15 GW of renewable energy projects in Andhra Pradesh. These projects are set to be established across districts such as Anantapur, Kadapa, Kurnool, Visakhapatnam, and Vizianagaram.

Adani’s plans in Telangana

In 2024, Adani Group announced investments worth ₹12,400 crore in Telangana. During the World Economic Forum in Davos, Chief Minister A Revanth Reddy met Gautam Adani, following which Adani Green Energy pledged ₹5,000 crore for two pumped storage projects with a combined capacity of 1,350 MW. Additionally, AdaniConneX Data Centres committed ₹5,000 crore for a 100 MW data center campus in Chandanvelly.

Hybrid renewable energy cluster in Gujarat:

Another major investment by Adani Green Energy Limited is developing a 30 GW renewable energy plant on barren land at Khavda in Kutch of Gujarat over an area of 538 sq km after which it would become the planet's largest power plant regardless of the energy source. The project was started in December 2022 and the first production was made on December 31, 2023. Adani Green Energy Limited will invest about Rs 1.5 lakh crore and Adani Group will invest about Rs 2.3 lakh crore in renewable energy and manufacturing capacity by 2030.

The unfolding allegations and Adani Group’s extensive investment plans have cast a spotlight on its operations and potential implications for these high-profile projects.