The controversy stems from allegations by the United States Securities and Exchange Commission (SEC), which filed charges against Adani Group and its associates in connection with a power procurement deal worth 7,000 MW of solar energy. According to the SEC, the Adani Group offered substantial bribes to state officials to ensure the success of the agreement. This includes meetings between Adani and Andhra Pradesh officials, including Chief Minister Jagan Mohan Reddy, where “incentives” were allegedly discussed to finalize the deal.
As part of the agreement, the Andhra Pradesh Electricity Regulatory Commission (APERC) approved a procurement plan in late 2021, which aimed to provide farmers with nine hours of free daytime electricity. The deal was approved despite concerns raised by opposition parties and legal challenges, including allegations that the contract bypassed a competitive bidding process, which is required under the Electricity Act.
Despite the gravity of these accusations, officials in Andhra Pradesh, including Reddy’s party, the YSR Congress Party, have denied any direct agreements with Adani Group. They maintain that the procurement agreement was negotiated between SECI and local power distribution companies. However, the ongoing legal scrutiny over the deal is likely to intensify as more details emerge from investigations at both the state and federal levels.