Adani Group Faces Allegations of Bribery Scheme in U.S. Court: Accused of Offering $265 Million to Indian Officials

The United States Department of Justice (DoJ) has filed charges in a U.S. court alleging that Gautam Adani, along with other executives of the Adani Group, orchestrated a multi-million-dollar bribery scheme. The alleged scheme aimed to secure contracts for selling solar power to Solar Energy Corporation of India Ltd (SECI), a government-owned entity under India’s Ministry of New and Renewable Energy.

Key Allegations

1. Manufacturing-Linked Tender:

Between December 2019 and July 2020, Adani’s company and a U.S.-based company were awarded Letters of Award (LOA) for supplying 12 gigawatts of solar power to SECI.

The U.S. company was allocated 4 GW, while Adani’s company was assigned 8 GW.

2. Bribery to Secure Agreements:

High prices quoted in the LOA made it difficult for SECI to find state electricity distribution companies willing to purchase the power.

To resolve this, it is alleged that Gautam Adani, Sagar Adani, Vneet Jaain, and others offered bribes totaling $265 million (approximately ₹2,209 crores) to Indian government officials.

Notably, ₹1,750 crores ($228 million) was allegedly offered to an official to persuade Andhra Pradesh’s power distribution company to purchase 7 GW of solar power from SECI.

3. Execution of Agreements:

Following the alleged bribes, between July 2021 and February 2022, several states, including Andhra Pradesh, Tamil Nadu, Odisha, Jammu and Kashmir, and Chhattisgarh, signed Power Sale Agreements (PSAs) with SECI.

SECI, in turn, signed Power Purchase Agreements (PPAs) with Adani and U.S.-based companies for solar power supply.

Legal Violations Alleged

Foreign Corrupt Practices Act (FCPA):
The DoJ claims Adani and others violated the FCPA, which prohibits corrupt payments to foreign officials for business benefits.

Foreign Extortion Prevention Act (FEPA):
The filing alleges violations of FEPA due to the conspiracy to bribe Indian officials and misrepresent anti-bribery practices to U.S.-based investors.

Statements from U.S. Authorities

U.S. Attorney Peace:

“The defendants orchestrated an elaborate scheme to bribe Indian officials to secure billion-dollar contracts and misled U.S. investors about the bribery.”

Deputy Assistant Attorney General Miller:

“This indictment exposes schemes involving over $250 million in bribes to Indian officials and fraud at the expense of U.S. investors.”

FBI Assistant Director Dennehy:

“Adani executives bribed the Indian government to secure energy contracts, defrauded investors, and obstructed investigations into their misconduct.”

Adani Group’s Response

Adani Green has strongly denied the allegations, stating:

“The allegations by the U.S. Department of Justice and the Securities and Exchange Commission are baseless. These are mere accusations, and the defendants are presumed innocent unless proven guilty. Legal recourse will be pursued.”

Significance

The case underscores serious implications for international business practices, investor confidence, and U.S.-India business relations. It also brings into focus the enforcement of anti-corruption laws like the FCPA in cross-border operations.

Case Status: The charges remain allegations, with the accused presumed innocent until proven guilty.