New Delhi: The recent controversy around the Adani Group’s solar deal in Andhra Pradesh has created a lot of buzz, serious accusations of bribery, with questions about whether the deals made under Chief Minister Y.S. Jagan Mohan Reddy’s government are done fairly or not. The situation is getting even more worse because Gautam Adani is also facing legal trouble in the U.S., where he’s been accused of being part of a bribery scheme.
Gautam Adani and some of his associates are also alleged to have agreed to pay more than $265 million in bribes to Indian officials to obtain contracts for Adani Green Energy and as reported these contracts may generate $2 billion in profits over 20 the next years. The U.S. Securities and Exchange Commission has also inquired about this, but the Adani Group denies all the allegations and calls them baseless.
In response, Jagan Mohan Reddy has dismissed the bribery allegations. He claims that the PPA was strictly between government entities and not influenced by any outside parties. He also stated that his name is not mentioned in any of the legal documents pertaining to the case, labeling the allegations vague and baseless.
Defending the Solar Deal:
He even went on to defend the tariff prices of the solar deal stating that it was more on the lower side, having touched ₹2.49 for per unit, especially with average rates being ₹5.1 at the time of purchase. He believes it is going to save ₹1 lakh crore more on the state’s balance sheets for the next 25 years. Reddy slammed former administrations for doing high priced deals that have always come as a financial liability.
He added that the differences in solar power pricing between states are due to geographical factors, like how much sunlight each state gets. While states like Gujarat and Rajasthan got solar power at ₹1.99 per unit, Andhra Pradesh’s cost reflects its local conditions.
Political Impact:
These allegations have created much political tension. Reddy accused opposition parties, especially the Telugu Desam Party (TDP), of using these bribery accusations to damage his reputation and undermine his government. He even warned that legal action would be taken against anyone spreading false claims about him.
Ongoing Recent Developments:
In another related development, Adani Ports decided to withdraw its funding request from the U.S. International Development Finance Corporation for a port project in Sri Lanka. They will instead use their own resources to fund the project. This is after the Adani Group has been under growing scrutiny due to the investigations that have been ongoing regarding allegations of corruption.
The situation is still evolving, and both the judicial battle and political fallouts continue to unfold. Further evidence linking Adani with bribery could seriously affect public trust and political stability in Andhra Pradesh.
