The billionaire chairman of the Adani Group, Gautam Adani, faces significant accusations in the United States. An American court has decided to charge him and eight others with fraud and bribery. Among these accused are Sagar Adani, Executive Director of Adani Green Company, and Rajesh Adani's son, aged 30. Also implicated is Vineet Jain, former CEO of the Adani Group. The matter has ignited tremendous controversy, with the opposition asserting a political storm just ahead of the winter session of Parliament beginning November 25th. Previously, Parliament witnessed turmoil over the Hindenburg controversy.
The accusations suggest that Gautam Adani used American investors' funds to bribe Indian officials and secure projects for massive profits projected at $2 billion in 20 years. Allegedly, approximately INR 2200 crore was paid in bribes to state governments of Andhra Pradesh, Odisha, Jammu-Kashmir, Tamil Nadu, and Chhattisgarh between 2021 and 2022. Since the concerned company was listed in the American stock market, investigations were launched in the USA, and New York's district court has now charged Adani.
This controversy has become a focal point in Indian politics. A mere allegation has wiped out INR 5.35 lakh crore from the Indian stock market, equivalent to the nation's annual defense budget. Such steep losses of INR 1,115 crore per minute have never been seen before due to a single news article.
The Indian market plummet resulted in massive losses for Adani Group companies, totaling INR 2.2 lakh crore. Before the news broke, the market value of these companies stood at INR 14.31 lakh crore, now reduced to INR 12.10 lakh crore. Consequently, Gautam Adani slipped from 22nd to 25th on the world's richest list.
Reasons Behind the American Investigation
The entire saga revolves around solar energy projects. Between December 2019 and July 2020, the Solar Energy Corporation of India Limited issued letters of award—the formal agreements—to companies including Adani Green Energy Limited and Azure Power Global Limited from Mauritius. The government allowed them a total of 12 gigawatts of solar energy production.
Adani's company was to produce 8 gigawatts, while Azure Power was granted 4 gigawatts. It was lauded by Gautam Adani as the world's largest solar energy agreement. Initially, these companies were optimistic, but the agreement soon turned challenging. The central company couldn't secure agreements with state governments to purchase electricity due to high tariffs.
Allegations of State Bribery
Documents from New York's district court allege that bribes facilitated Adani Green's and Azure Power's swift access to substantial solar energy projects across Andhra Pradesh, Odisha, Jammu-Kashmir, Tamil Nadu, and Chhattisgarh. Allegedly, INR 638 crore went to Azure Power, while INR 1,500 crore was directed to Adani’s company, with the largest bribe of INR 2,039 crore purportedly going to Andhra Pradesh's government.
Source: aajtak
State Political Context During Agreements
Andhra Pradesh was governed by the YSR Congress Party, Chhattisgarh by the Congress Party, Tamil Nadu by DMK, Odisha by Biju Janata Dal, and Jammu Kashmir was under President's rule. These were the states where Gautam Adani allegedly bribed officials. The accusations even claim Adani personally met these officials in Andhra Pradesh thrice. Nonetheless, these allegations are countered by American district court findings which have been refuted by opposition parties, stating the claims are baseless.
Source: aajtak
Opposition's Allegations
Meanwhile, the opposition accuses the Indian government's company of aiding Adani's, although, in reality, India's electricity supply mechanism mandates a central company between private enterprises and state purchases. Allegations suggest when no contract formed due to high tariffs, Gautam Adani proffered bribes, allegedly in conjunction with the Mauritian company.
Rahul Gandhi's Statements
Congress leader Rahul Gandhi demanded interrogation and arrest of Adani, suspecting protection due to PM Modi. He accused Adani of hijacking India and claimed PM Modi facilitates Adani’s business globally. Similarly, Priyanka Gandhi remarked on Adani's apparent safety despite controversies, hinting at protection from the Prime Minister. Congres's Jairam Ramesh issued a booklet questioning PM Modi's affiliation to Adani.
Political Clash over Adani Group Allegations
BJP spokesperson Sambit Patra alleged Rahul Gandhi attempts to tarnish PM Modi’s reputation, paralleling past failed accusations like Rafale. At the same time, BRS Party related Rahul Gandhi and PM Modi to opposite sides of the same coin via AI-generated imagery. Shiv Sena's Sanjay Raut expressed dismay at India's image being tarnished, with AAP’s Sanjay Singh reflecting on Delhi's evasion of an Adani bid. RJD’s Manoj Jha criticized BJP's defense of Adani as indicative of bias while Congress's Bhupesh Baghel labeled the Prime Minister's defense of Adani as ‘embarrassing’.
