Treading Caution : On US Court’s Charges Against Adani, Ruling TDP In Andhra Pradesh Plays Safe ; YS Jagan Mohan Reddy Terms Allegation Incorrect

The Telugu Desam Party, a key member of the National Democratic Alliance, will react only after going through the issue of the Adani Group allegedly paying bribes for solar power contracts in Andhra Pradesh, says party spokesperson Kommareddy Pattabhiram.

“We need to study the report before coming to a conclusion. It would take two to three days,” Pattabhiram told PTI when asked about the TDP’s reaction.

Gautam S Adani, India’s second-richest man, and seven others, including his nephew Sagar R Adani, have been charged by the US department of justice with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than $2 billion in profit over 20 years.

The Adani Group has denied the charges saying the allegations by US prosecutors are ‘baseless’ and the conglomerate is ‘compliant with all laws’.The serious fraud charges brought by a federal court in Brooklyn, New York, against the Adani Group and its Chairman Gautam Adani has put Andhra Pradesh under the spotlight.

The court charges revealed in an indictment document dated November 20 mention only an unnamed “Foreign Official #1” as being offered a bribe of $228 million (nearly Rs 1,750 crore) to facilitate a power purchase agreement with the State of Andhra Pradesh. But the original complaint by the United States Securities and Exchange Commission (USSEC) directly charges Adani as having met then Andhra Pradesh Chief Minister (YS Jagan Mohan Reddy) in this regard in August 2021.

In a statement, the Adani Group strongly denied the charges of bribery, calling them baseless. The YSRCP — in a three-page note — has said the accusations are incorrect

YS Jagan Mohan Reddy’s YSR Congress Party has strongly condemned the allegations of USSEC in its Indictment saying that they are incorrect.

The Power Sale Agreement (PSA) was signed between two government agencies SECI and Discoms after the approvals from the AP Electricity Regulatory Commission (APERC) and the Central Electricity Regulatory Commission (CERC) and there was no direct agreement with Adani group.

In a three-page rebuttal, the YSRC explained that this deal was extremely favourable with respect to the interests of the State, and procurement of power at Rs 2.49 per kWh, including waiver of ISTS charges. The cheap rate would substantially benefit the State with a saving of Rs 3,700 crore per annum.