The Andhra Pradesh government is reviewing the possibility of canceling its power supply contract with the Adani Group following serious bribery allegations levied against the conglomerate. US authorities have indicted Gautam Adani, the founder of the Adani Group, and seven others for allegedly bribing Indian officials with $265 million to secure lucrative solar power contracts across several states, including Andhra Pradesh, between 2021 and 2022.
The charges, outlined in a US indictment, suggest that the Adani Group engaged in corrupt practices to influence Indian state electricity companies, with $228 million of the alleged bribes paid to officials in Andhra Pradesh. The power deals, said to be worth approximately seven gigawatts of solar energy, are among the largest in the country. However, the Adani Group has categorically denied the allegations, calling them baseless.
In response to the scandal, Andhra Pradesh’s Finance Minister Payyavula Keshav confirmed that the state government is reviewing all relevant files from the previous administration, which was in power during the period of the alleged misconduct. He added that the government is seriously evaluating the possibility of annulling the contract. “We will examine the possibilities, including canceling the contract,” Keshav told Reuters.
The controversy has already had significant financial repercussions for the Adani Group. Following the indictment, the company’s shares and bonds have experienced sharp declines, and major investors are reconsidering their positions. Total Energies halts investments in Adani Green amid bribery allegations, while the Andhra Pradesh government and SEC investigate further.
