Adani bribery charge sparks political storm: Centre, states react to US claims

Four states – Andhra Pradesh, Chhattisgarh, Odisha and Tamil Nadu – and one Union Territory, Jammu and Kashmir, came into focus after US prosecutors indicted industrialist Gautam Adani and seven others for allegedly paying bribes to Indian government officials for securing solar power contracts.
The prosecutors alleged that the Adani Group paid USD 265 million in bribes, with a large chunk directed at officials in Andhra Pradesh, to secure contracts with state electricity distribution companies between 2021-2023. Several leaders of these states, including Andhra Pradesh, denied such allegations and said they were investigating the claims.
The Adani Group strongly rejected the bribery allegations, calling them “baseless”. In a statement, the company said it “never engaged in bribery or corrupt practices” and that it will “vigorously defend itself against these unfounded claims”.
Sources told India Today TV that the central government has decided not to intervene in the matter, citing that the investigation originated in the US against a private Indian company. The BJP has clarified its position, emphasising that the state governments named in the report must address the allegations independently.
Andhra Pradesh Chief Minister Chandrababu Naidu on Friday addressed the US allegations of bribery involving the Adani Group and the erstwhile YS Jagan Mohan Reddy regime, saying his government will “assess the situation” and take action based on the evidence.
The allegations stem from court filings by the US Securities and Exchange Commission (SEC), which claim that Adani met Reddy in August 2021 after Andhra Pradesh did not sign a power supply agreement with the government-run Solar Energy Corporation of India (SECI).
The SEC alleged that “incentives” were discussed during the meeting, with Adani reportedly offering or promising bribes to secure the deal. Soon after, Andhra Pradesh agreed to buy 7 gigawatts of solar power, the largest amount in any state in the country. The YSRCP has denied any deals with the Adani Group, saying that the solar contract was government-signed.
Chandrababu Naidu said, “The issue that has come out today has badly destroyed the brand Andhra Pradesh’s image. It makes me very sad. More facts are yet to come to light. The government is also thinking about what steps to take as facts are being unravelled as we speak. We will discuss what decision we need to take and will inform all of you accordingly.”
Andhra Pradesh Congress chief YS Sharmila accused her estranged brother and former Chief Minister Reddy of corruption in connection with allegations of bribery involving Adani.
“There is clear evidence of bribery alleged by the US that Andhra Pradesh was involved in Adani’s deal during Jagan Reddy’s rule. If Adani is defaming India, Jagan Mohan Reddy is defaming Andhra Pradesh. Rs 1,700 crore bribe was given in the solar energy deal with Andhra Pradesh and Jagan Mohan Reddy has added Rs 17,000 crore burden on the state. This is not only an insult to our family, but to the state and whole country,” she said.
“What is ED, CBI and other agencies doing? Who will conduct an inquiry? Andhra Pradesh has been offered to Adani as a blank cheque and the state has become ‘Adani Rashtra’. The Congress demands a detailed inquiry into it,” she added.
Tamil Nadu Electricity Minister Senthil Balaji clarified that the state’s power department has not entered into any direct agreements with the Adani Group since the DMK came to power in 2021. He urged the Centre to investigate the allegations comprehensively.
Balaji highlighted that the deal they signed was with Solar Energy Corporation of India (SECI), a central government entity, in September 2021 to purchase 1,000 MW of power at a very low rate of Rs 2.61 per unit for 25 years.
Speaking to India Today TV, DMK spokesperson A Saravanan challenged the BJP-led central government to investigate the allegations. “Why are BJP leaders defending a corrupt group? If they have no connection with Adani, why not order an inquiry? If bribes were taken, arrest the culprits. The BJP has the CBI and ED at its disposal, do they have the courage to register an FIR and name Adani as Accused No 1?” Saravanan asked.
Former Chief Minister Bhupesh Baghel and former Power Minister TS Singh Deo refuted claims of the Congress government of having any dealings with Adani. Both have called for a Joint Parliamentary Committee (JPC) probe into the matter.
Baghel, who was also the power minister in 2021, has seconded Rahul Gandhi’s stance and said, “There should be a JPC probe into the Adani deals in Chhattisgarh. I welcome it and it should be made public”.
Deo, who was briefly the power minister between July 2023 to December 2023, also said, “I was neither the power minister nor the Deputy Chief Minister in 2021. Also, it is crucial to mention that we had nothing to do with Adani Greens as the PSA (Power Sale Agreement) was signed with SECI.
The BJD, which was in power in Odisha from 2000 till June 2024, on Friday, said the allegations that state government officials took bribes from the Adani Group for the supply of renewable energy to the state from the central pool, were “false and not based on fact”.
Former Odisha Energy minister and BJD MLA PK Deb said, “The types of allegations made in the name of Odisha are baseless and not based on facts.”
“The Government of Odisha has nothing to do with the agreement. Whatever agreement was done that remained confined among Gridco, the distribution company and the SECI (Solar Energy Corporation of India Limited), a central PSU. The state government has no role in all these matters though the administration was informed regarding the PSA”, Deb told PTI.
The ruling BJP government is reportedly examining the allegations and has assured that a thorough investigation will be conducted.
State law minister Pruthwiraj Harichandan said, “We can’t say anything based on the news published in newspapers. If anything could have happened, the investigation will be done as per the law”.
BRS working president KT Rama Rao (KTR) demanded that the Congress-led Telangana government cancel all contracts with Adani Group and accused it of hypocrisy. He pointed out Congress’s double standard, saying it criticised Adani nationally while fostering ties locally.
At a press conference held at Telangana Bhavan in Hyderabad, KTR demanded immediate cancellation of all agreements worth Rs 12,400 crore between the Telangana Congress government and Adani, including investments in green energy, data centres, and cement industries.
“In the 10-year rule of KCR, we didn’t accept Adani proposals in Telangana. Since January, from collecting pending electricity bills in the old city to the cement factory and MoUs with Adani in Telangana, the Congress has been playing good cop, bad cop in the Adani issue. The Congress must clear their stand. Why one policy in Gully (Telangana) and another in Delhi?”