2024-11-26 19:23:28 :
NEW DELHI, Nov 26 (Reuters) – The Indian state of Andhra Pradesh is likely to suspend relations with the U.S. over an alleged bribery scheme that indicts Gautam Adani, the billionaire founder of Adani Group, two government sources said. Adani Group related power procurement transactions.
Sources said the southern state will ask the federal government and Solar Energy Corporation of India (SECI), which awards power supply contracts to Adani and other companies, to investigate the allegations.
The suspension, which could be announced soon, would be the first such action by an Indian state government after U.S. prosecutors charged Gautam Adani and seven others with agreeing to pay bribes to unidentified Indian government officials $265 million to secure solar power contracts.
The U.S. indictment alleges that the bulk of the alleged bribe – $228 million – was paid to a government official to get Andhra Pradesh’s state-owned power distribution company to agree to buy electricity. Adani says the accusations are baseless
Andhra Pradesh is ruled by Prime Minister Narendra Modi’s main ally Chandrababu Naidu, who formed a coalition government after the main Bharatiya Janata Party failed to secure a majority in national elections that ended in June. has the second highest number of parliamentary seats.
Modi’s federal government has so far not commented on the US prosecution of Adani.
According to a source, power supply in Andhra Pradesh is scheduled to start from next year under the SECI agreement.
“We will make a decision soon,” a second source said of the planned suspension.
Clauses in the power supply agreement provide that if a bidder commits serious irregularities, Indian states can terminate the contract and ban the company concerned from participating in any future bids.
Adani Group and the Andhra Pradesh government did not immediately respond to Reuters’ requests for comment.
Reuters reported earlier on Tuesday that Andhra Pradesh was exploring the possibility of canceling a power supply contract linked to Adani Group.
Andhra Pradesh’s former ruling YSR Congress party last week denied any wrongdoing and that the alleged misconduct occurred during its time in power.
(Reporting by Sarita Chaganti Singh Aftab Ahmed. Editing by Louise Heavens and Mark Potter)
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