How Gautam Adani’s Alleged Bribery Scheme Unfolded :
Gautam Adani and his business associates have been indicted by the U.S. Department of Justice (DOJ), which describes the systematic execution of an alleged bribery conspiracy. According to reports, this scam operated via “bribery notes,” code words, private meetings, Excel analysis, PowerPoint presentations, and other payment methods.
The indictment outlines specific allegations about the practices followed by senior officials at Adani Green Energy Limited and Azure Power Global Limited, a renewable energy company based in New Delhi (formerly listed on the New York Stock Exchange). The allegations center on bribing Indian government officials to secure lucrative solar energy contracts.
Alleged Motivation Behind the Scheme
The indictment explains the alleged reasons behind resorting to bribery. Between December 2019 and July 2020, Azure Power and a subsidiary of Adani Green Energy won and received Letters of Award (LOAs) for manufacturing-linked solar tenders issued by the Solar Energy Corporation of India (SECI), which operates under India’s Ministry of New and Renewable Energy. This ministry’s mission is to promote renewable energy usage in the country.
SECI’s Inability to Find Buyers
Under the terms of this award, Azure Power and Adani Green’s subsidiary were to supply 4 GW and 8 GW of solar energy, respectively, to SECI, which would purchase the energy at a fixed rate. SECI, in turn, was responsible for finding state electricity distribution companies (DISCOMs) to buy the 12 GW of solar energy. At the time, this was one of the largest solar energy projects in the world, and Azure Power estimated post-tax profits of $2 billion over 20 years.
However, the “high energy prices” set in the LOA made it impossible for SECI to find buyers. This put the “attractive LOA and associated revenue” at risk, according to the indictment.
The Alleged Bribery Plan
In response, a plan was allegedly devised involving Gautam S. Adani, Sagar R. Adani (Gautam Adani’s nephew and Executive Director of Adani Green Energy), Vineet S. Jain (former CEO of Adani Green Energy), Ranjit Gupta (former CEO of Azure Power Global), and others. The plan was to offer, authorize, make, and promise bribe payments to Indian government officials. These payments would encourage state DISCOMs to enter into Power Sale Agreements (PSAs) with SECI.
Once the PSAs were in place, Adani Green and Azure Power would secure Power Purchase Agreements (PPAs) with SECI. It was agreed that Azure Power would “pay a portion of the promised bribes.”
Use of Messaging Apps and Meetings
The co-conspirators allegedly used “an electronic messaging application” on their mobile phones to discuss the progress of their plans. Gautam Adani reportedly met with “Foreign Official #1” in Andhra Pradesh personally in August, September, and November 2021.
The indictment claims the co-conspirators promised bribes totaling approximately ₹2,029 crore ($265 million) to Indian government officials, out of which about ₹1,750 crore was directed to the “foreign official” in Andhra Pradesh.
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