The Andhra Pradesh government has intensified its scrutiny of agreements linked to the Adani Group, following recent allegations of bribery involving the conglomerate. Days after the US Securities and Exchange Commission (SEC) indicted Gautam Adani, Sagar Adani, and others in a ₹2,000 crore bribery case, the Andhra Pradesh administration announced a thorough review of internal files from the previous government.
State Finance Minister Payyavula Keshav revealed on Monday, November 26, that the administration is investigating potential misconduct and examining whether the power supply contract tied to the Adani Group can be canceled. Speaking to Reuters, Keshav said, “We will also examine what can be done next, like is there a possibility to cancel the contract… the state government is looking into this issue closely.”
The allegations stem from SEC findings that between 2021 and 2022, substantial bribes, amounting to $228 million (around ₹1,900 crore), were allegedly paid to unnamed Indian government officials to secure solar power projects in various states, including Andhra Pradesh. The SEC noted that Andhra Pradesh’s electricity distribution companies signed agreements to purchase approximately seven gigawatts of solar power, the largest commitment by any Indian state.
An Adani Group spokesperson has yet to respond to queries regarding the developments. Meanwhile, French oil major TotalEnergies, holding a 20% stake in Adani Green Energy Ltd, has paused further investments in the group.
The opposition YSR Congress Party, which governed the state during the alleged misconduct, denied any wrongdoing last week. However, the revelations have cast a shadow over their administration.
This marks another major setback for the Adani Group, which has been reeling since the release of the Hindenburg report in January 2023. Adani Enterprises Ltd shares have taken a hit, dropping 3.51% on Tuesday to ₹2,178.40 during trading.
As the controversy unfolds, Andhra Pradesh’s government appears determined to hold accountable those responsible for any irregularities, sending a strong message in the wake of the US indictment.
