The Hindu: Published on 28th Nov 2024:
Why in News
Indian billionaire Gautam Adani, his nephew Sagar Adani, and several executives from Adani Green and Azure Power are under scrutiny by U.S. prosecutors. They are accused of devising a $265 million bribery scheme to secure renewable energy projects in India, including tenders floated by the Solar Energy Corporation of India (SECI). This scheme, named “The Corrupt Solar Project,” allegedly involved bribing Indian government officials to gain unfair business advantages, raising significant international concerns about corporate corruption.
Despite the allegations, Adani Group has denied the charges, labeling them as “baseless,” while Indian government officials have yet to issue a formal statement.
Main Allegations
Bribery Scheme and Conspiracy:
Gautam Adani and other executives are accused of conspiring with Azure Power executives to bribe Indian government officials and secure tenders for renewable energy projects.
The scheme involved a calculated plan to offer bribes totaling $265 million to ensure favorable deals for Adani Green and Azure Power.
Misleading Investors:
Adani Group is accused of making misleading statements to the Indian stock exchange and international investors regarding its operations, even as it was aware of the ongoing investigation by U.S. authorities.
Between 2021 and 2024, the Adani Group reportedly raised over $3 billion from investors in the U.S., including approximately $175 million during a September 2021 offering by Adani Green.
Role of Sagar Adani:
Sagar Adani, executive director of Adani Green and nephew of Gautam Adani, was allegedly instrumental in executing the bribery scheme. He is accused of using his mobile phone to share details about the payments with officials.
Involvement of Azure Power Executives:
Azure Power executives prepared detailed analyses and presentations (using Excel and PowerPoint) on how the company could reimburse Adani Green for the bribes it had paid.
How Bribes Were Paid-
Payment Mechanisms:
Bribes were offered to Indian officials to secure favorable agreements with SECI (Solar Energy Corporation of India), a federal government-owned entity overseeing renewable energy tenders.
For some projects, $30,000 per megawatt was calculated and allegedly paid as bribes to ensure contracts.
Role of Key Players:
Sagar Adani played a pivotal role in managing the bribery communications and ensuring smooth transactions.
Executives from Azure Power developed financial plans to reimburse Adani Green for its bribe-related expenses.
Documentation and Coordination:
U.S. authorities alleged that the scheme was well-documented through emails, spreadsheets, and presentations, making it easier for investigators to piece together the corruption trail.
The Projects in Question:
Solar Energy Corporation of India (SECI) Tenders:
The allegations focus on renewable energy tenders awarded by SECI between 2019 and 2020, in which both Adani Green and Azure Power secured lucrative contracts.
Adani Energy Park in Khavda:
One key project under scrutiny is the Adani energy park in Khavda, which the company claims is the world’s largest renewable energy project. This project benefited significantly from the alleged bribery scheme.
Other Renewable Energy Projects:
The tenders and agreements enabled Adani subsidiaries and Azure Power to establish a strong foothold in India’s renewable energy sector, often at the expense of fair competition.
FBI Probe:
Start of Investigation:
The FBI launched an investigation into the alleged corruption in March 2023, focusing on Adani Group’s financial and communication records.
Collection of Evidence:
- U.S. authorities approached Sagar Adani with search warrants and subpoenas under the Foreign Corrupt Practices Act (FCPA).
- Investigators retrieved electronic evidence from Sagar Adani, including emails, presentations, and financial data related to the bribes.
Grand Jury Involvement:
- A grand jury subpoena was issued as part of the investigation to explore deeper connections between Adani Group, Azure Power, and Indian officials.
- Evidence uncovered so far points to a systematic and well-planned scheme involving multiple layers of coordination between corporate executives and government officials.
Focus Areas of the FBI:
- Detailed examination of the bribe amounts and their allocation.
- Documentation on how Adani Green and Azure Power planned to share the financial burden of the bribes.
- Tracking the flow of funds to uncover potential offshore accounts or illegal channels.
