The United States court case against Gautam Adani and associates alleges bribery and fraud involving Rs 1,750 crore to secure solar contracts in India. The scheme, spanning from 2019 to 2024, involved multiple officials and promised additional bribes. Legal violations include the Foreign Corrupt Practices Act, with significant implications for corporate accountability and Adani Group’s reputation.
New Delhi: The United States court filing against Gautam Adani, his nephew Sagar Adani, and six others has revealed startling allegations of bribery and fraud in securing solar energy contracts in India. According to the indictment, approximately Rs 1,750 crore (around $228 million) of bribes were offered to an unnamed Andhra Pradesh official, referred to as “Foreign Official #1,” to ensure state electricity distribution companies (DISCOMs) agreed to purchase seven gigawatts of solar power from the Solar Energy Corporation of India (SECI) under the Manufacturing Linked Project.
Key Details of the Allegations
The court filing alleges that between 2019 and 2024, Gautam Adani personally met with “Foreign Official #1” multiple times to facilitate agreements between Andhra Pradesh DISCOMs and SECI. Meetings reportedly occurred on August 7, September 12, and November 20, 2021, highlighting the intricate efforts involved in the bribery scheme.
In addition to the Rs 1,750 crore offered, the indictment details that Rs 2,029 crore (approximately $265 million) was promised by the co-conspirators to Indian government officials to execute power sale agreements (PSAs). These agreements would benefit the subsidiaries of Adani Green Energy and a US-based renewable energy company incorporated in Mauritius.
Bribery Network and Co-Conspirators
The US court documents identify several key figures and their alleged roles:
- Vneet S. Jaain: CEO of Adani Green Energy.
- Ranjit Gupta: Former CEO of Azure Power Global Ltd.
- Rupesh Agarwal: Also associated with Azure Power.
- Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra: Connected to a Canadian institutional investor and accused of facilitating the bribery network.
The indictment describes a global conspiracy involving shell companies, coded communications, and intermediaries to ensure government officials favored the co-conspirators in awarding energy contracts.
Andhra Pradesh and the Manufacturing Linked Project
A critical element of the case is Andhra Pradesh’s involvement. The state’s DISCOMs signed a PSA with SECI on December 1, 2021, agreeing to purchase the largest share—seven gigawatts—of solar power under the Manufacturing Linked Project. This was significantly higher than agreements with other Indian states, including Odisha, Tamil Nadu, and Chhattisgarh.
Power Purchase Agreements and US Involvement
Following the execution of PSAs, SECI entered into power purchase agreements (PPAs) with Adani Green Energy subsidiaries and the US Issuer. Between October 2021 and February 2022, the US Issuer agreed to supply 650 megawatts of solar power across several Indian states, including Andhra Pradesh, which alone accounted for 2.3 gigawatts of the total energy commitment.
The filing outlines how these agreements were part of a broader strategy to direct contracts to Adani’s companies while allegedly defrauding US investors and violating multiple anti-corruption laws.
Legal Context and Violations
The allegations invoke two key US laws:
- The Foreign Corrupt Practices Act (FCPA): Prohibits offering bribes to foreign officials to obtain business advantages.
- The Foreign Extortion Prevention Act (FEPA): Targets schemes involving the extortion of funds by foreign officials.
The indictment alleges that the defendants’ actions were in clear violation of these laws, leveraging corrupt practices to secure solar energy contracts worth billions of dollars.
Five Counts of Criminal Charges
The US prosecutors outlined five counts of charges:
- Conspiracy to Violate the FCPA: Bribing Indian officials to secure energy contracts.
- Securities Fraud Conspiracy: Misleading investors about financial transactions tied to the bribery.
- Wire Fraud Conspiracy: Using fraudulent representations to obtain loans and investments.
- Securities Fraud: Specific to a 2021 bond issuance based on manipulated financial details.
- Conspiracy to Obstruct Justice: Destroying records and withholding evidence to impede US investigations.
Extensive Impact Across States
The court filings detail that bribes resulted in agreements with SECI benefiting multiple Indian states, with Andhra Pradesh receiving the lion’s share. The proceeds allegedly helped the US Issuer and Adani Green Energy subsidiaries secure lucrative contracts, deepening their foothold in India’s renewable energy sector.
What’s Next?
The indictment seeks forfeiture of all assets gained through corrupt practices, signaling a robust legal challenge ahead for Gautam Adani and the co-defendants. While the identity of “Foreign Official #1” remains undisclosed, the case underscores significant international scrutiny of Adani Group’s operations.
As the trial unfolds, the allegations highlight potential gaps in governance and enforcement that allowed such schemes to operate at the intersection of corporate and governmental interests.
Conclusion
This high-profile case is a crucial test of global accountability in combating corporate corruption. The Adani Group, which has vehemently denied similar accusations in the past, now faces a legal battle in the US that could have significant implications for its global reputation and operations.
“Rs 2,029 crore in bribes promised” paints a grim picture of the alleged nexus between corporate greed and governmental complicity, with ramifications that extend well beyond India’s borders.
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