U.S. Investigates Adani Group Over Corruption Allegations
The Adani Group, led by Indian billionaire Gautam Adani, is under scrutiny by U.S. authorities, including the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), for alleged corruption and bribery tied to renewable energy projects in India. These allegations center around improper payments made to secure favorable agreements with Indian state governments for power purchase agreements (PPAs) critical to large-scale solar energy initiatives.
Key Allegations
- Bribery in Renewable Energy Contracts: The U.S. SEC claims that Adani Green Energy and Azure Power executives conspired to offer “incentives” or bribes to Indian state officials to ensure agreements that would secure billions in revenue for both companies. Bribes allegedly included payments of ₹25 lakh ($30,000) per megawatt of power purchased in certain states.
- WhatsApp Evidence: Conversations retrieved by U.S. authorities reveal senior executives discussing doubling bribes to push state electricity distribution companies into signing contracts.
- Impact on Projects: Adani Green Energy reportedly benefited from these agreements, securing deals for projects involving thousands of megawatts of renewable energy production.
Broader Implications
The investigation is part of a larger U.S. effort to enforce the Foreign Corrupt Practices Act (FCPA), which penalizes corruption involving foreign officials when U.S. financial systems or markets are implicated. Although the Adani Group denies any wrongdoing, this inquiry follows previous controversies, including allegations of stock manipulation by the Hindenburg Research report.
The probe is ongoing, and while charges have not yet been filed, the potential penalties for confirmed violations could include hefty fines and reputational damage. Moreover, the case comes amid heightened scrutiny of India’s business landscape as the country positions itself as a global leader in renewable energy.
For more details, you can explore coverage from reputable sources like the Business Standard and Livemint.
