Amid the row over the US indictment of Gautam Adani in a bribery case, an Andhra Pradesh government official named as “Foreign Official #1” in court filing has generated much curiosity. According to the prosecutors, out of the Rs 2,029 crore ($265 million) paid by the Adani Group as bribes to Indian government officials for securing solar power contracts between 2020-2024, Rs 1,750 crore was offered to “Foreign Official #1”.
The US indictment mentions “Foreign Official #1” a citizen of India. From May 2019 to June 2024, this person served as a high-ranking government official of Andhra Pradesh. However, the court filings did not reveal the identity of the “Foreign Official #1”.
In 2020, Adani Green Energy and another renewable energy company secured a contract to provide 12 gigawatts of solar power to government-owned Solar Energy Corporation of India (SECI). However, SECI couldn’t find buyers to purchase the solar power.
Sensing that it would put the deal at risk, Adani Group allegedly offered bribes to government officials, who were to convince state power distribution companies (Discoms) to buy power from SECI.
It is here that “Foreign Official #1” comes into play. The US indictment mentioned that Adani Group offered $228 million to the person, who in turn helped secure a deal for electricity providers in Andhra Pradesh to purchase 7 gigawatts of solar energy. It was then the largest amount of solar power procured by any state.
The matter pertains to 2021. Then, the Jagan Mohan Reddy-led YSR Congress was in power in Andhra Pradesh, having ousted the Chandrababu Naidu government in the 2019 Assembly polls.
The prosecutors also mentioned that Adani “personally interacted” with “Foreign Official #1” in Andhra Pradesh on multiple occasions in 2021 to finalise the agreements. The billionaire industrialist met the said official on August 7, September 12 and November 20 in 2021.
After the meetings, Andhra power distribution companies entered into a power sale agreement (PSA) with SECI, agreeing to purchase 7 GW of solar power.
Three other states (Chhattisgarh, Tamil Nadu, Odisha) and the Union Territory of Jammu and Kashmir also decided to sign up for solar power and inked agreements with SECI between July 2021 and February 2022.
The Adani Group has, however, called the allegations baseless and said it would take legal action.