In a move that has sparked intense debate, the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have unveiled allegations against Indian business magnate Gautam Adani and top executives of Adani Group, claiming they orchestrated bribes to Indian officials to secure large-scale solar energy contracts. While the allegations centre on corporate misconduct, it more or less looks like a strategic gambit by the Biden administration to disrupt foreign access to US capital markets.
What Are The Allegations?
The charges allege that Adani Group bribed Indian politicians, disbursing ₹2,000 crore to clear solar energy projects totaling 12 GW. U.S. authorities claim that the group concealed these activities in its financial disclosures while raising debt in the U.S., falsely declaring no involvement in bribery.
The timeline outlined in the chargesheet paints a damning picture:
- Adani Green and U.S.-listed Azure Power were preliminarily awarded solar contracts by India’s Solar Energy Corporation (SECI) in 2020, contingent on state power distributors signing purchase agreements.
- Allegedly, high tariffs delayed approvals, prompting Adani to pay bribes to politicians in Andhra Pradesh (₹1,750 crore), Tamil Nadu under the DMK government, Odisha under the BJD government, Chhattisgarh under the Congress government, and Jammu & Kashmir under central rule.
- Evidence reportedly includes WhatsApp conversations, emails, and recorded phone calls that showed Adani Green and Azure Power discussing plans for bribery payments. Documents such as Excel spreadsheets and PowerPoint slides detailed the proposed payment structures. Officials from Azure Power allegedly acknowledged Adani’s active role in facilitating bribes to Indian politicians to secure the solar energy contracts.
- Azure, which is also accused of complicity, purportedly ceded its claim to a lucrative 2.3 GW project after failing to resolve disputes over bribery payments, passing the contract entirely to Adani.
If proven, the charges could have far-reaching consequences for Adani Group, which heavily relies on foreign capital. A potential ban on raising funds in U.S. markets could jeopardize the conglomerate’s growth trajectory. However, the practical impact of asset seizures in the U.S. may be limited due to Adani’s minimal exposure there.
Ok, let me try to summarize the entire chargesheet against Adani. Needless to say,these are only allegations at this point but I am not gonna preface each sentence with the word "allegedly". I expect the readers to add it mentally. Pay attention to point 7 &8 -those are the most… https://t.co/zcu4Gc5Khg
— Sai (@Saiarav) November 21, 2024
A Political Undercurrent?
Critics argue the timing of the indictment is politically charged. With Joe Biden nearing the end of his presidency, the move appears to be part of a broader “scorched earth” strategy to create obstacles for a potential Republican administration under Donald Trump.
The U.S.’s selective application of its laws adds fuel to this interpretation. Chinese firms with well-documented ties to the Communist Party continue to raise billions in U.S. markets, while Adani is singled out for scrutiny. This double standard indicates how regulatory tools are weaponized to serve strategic objectives rather than upholding consistent standards of corporate accountability.
The Democrats running a scorched earth campaign and littering landmines ahead of a Trump presidency. A Biden-appointed attorney conjuring up a case of bribery to cut off a firm’s access to American financing.
The game can be played both ways, especially given the plutocratic… https://t.co/B7fWo5sAR8
— Surya Kanegaonkar (@suryakane) November 20, 2024
Global Fallout
The indictment risks souring U.S.-India relations, as Indian courts could retaliate by investigating American firms operating in India for corruption or data privacy violations. Many U.S. companies, from tech giants to energy conglomerates, have faced scandals involving bribery and malpractices overseas, yet continue operations with little pushback.
The alleged reliance on intercepted communications as evidence also raises concerns. Without hard proof disclosed, the charges spotlight the overreach of U.S. surveillance and underscore the importance of India developing indigenous communication platforms to safeguard against foreign interference.
A High-Stakes Moment
This indictment appears less about enforcing corporate accountability and more about Biden’s administration wielding regulatory tools for geopolitical power plays. The administration exposes its selective enforcement and double standards by targeting Adani while ignoring misconduct by Chinese firms and U.S. corporations abroad.
As Biden nears the end of his term, the desperation is palpable. This scorched-earth tactic is a last-ditch effort to disrupt global players and assert U.S. dominance before a potential Republican resurgence. Instead of fostering fair markets or international trust, these actions risk escalating tensions and undermining America’s credibility on the global stage.
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