Jagan Mohan Reddy embroiled in Adani bribery case: Timeline of meetings, power purchase by Andhra Pradesh government

The United States Securities and Exchange Commission (SEC) has alleged that Gautam Adani personally met with the then Chief Minister of Andhra Pradesh, Jagan Mohan Reddy, in August 2021, and discussed the matter of the power supply agreement and the `incentives” needed to make the state government enter into a deal for purchase of 7,000 MW of power. Jagan Reddy has firmly denied the allegations.

In a criminal indictment filed in New York court, the US prosecutors have accused Gautam Adani of bribery and fraud. The documents mention that a major chunk of bribery went to an Andhra Pradesh government official, identified as “Foreign Official #1” in the indictment.

KEY ALLEGATIONS AND TIMELINE

The allegation mentions a meeting between Gautam Adani and then-Andhra Pradesh Chief Minister Jagan Mohan Reddy in 2021, as well as subsequent agreements involving the Solar Energy Corporation of India (SECI).

“The bribe to Andhra Pradesh for this power supply agreement which was significantly larger than the Odisha power supply agreement… Later statements made by Adani Green executives to the executives indicated that the Andhra Pradesh bribe payment was approximately 200 million,’‘ the indictment document said.

Here’s a look at the timeline of key events:

• August 7, September 12, and November 20, 2021: According to the indictment, Gautam Adani personally met with foreign official #1 in Andhra Pradesh to advance execution of a PSA to discuss “incentives” to persuade the state government to execute the power supply agreement (PSA).
• October 28, 2021: The Andhra Pradesh Cabinet approved the proposal to procure 7,000 MW of solar power from SECI. This aimed to provide nine hours of free daytime power to farmers.
• November 13, 2021: The Andhra Pradesh Electricity Regulatory Commission (APERC) approved the procurement plan in three tranches.
• December 1, 2021: The tripartite PSA was formalized between AP Green Energy Corporation Ltd. (APGECL, later renamed APRAPSCOM), SECI, and the state government.
• December 20, 2021: CPI State Secretary K. Ramakrishna filed a Public Interest Litigation (PIL), alleging the agreement violated the Electricity Act by bypassing competitive bidding.
• May 4, 2022: TDP leader Payyavula Keshav challenged the agreement in court, arguing the agreed price of Rs 2.49 per unit was significantly higher than market rates.
• March 6, 2024: The Andhra Pradesh High Court directed APERC to review the agreement and hold public hearings.
• April 12, 2024: APERC approved the agreement, subject to the outcome of the pending PILs.

JAGAN REDDY EMBROILED IN ADANI INDICTMENT

The United States Securities and Exchange Commission alleges that Adani promised or paid bribes totaling approximately USD 200 million to Andhra Pradesh officials to facilitate the agreement. Prosecutors claim these discussions were part of a broader scheme where Adani and co-conspirators used electronic communications to coordinate efforts to influence government officials.

JAGAN REDDY’S PARTY ON ALLEGATIONS

The YSR Congress Party, which governed Andhra Pradesh from 2019 to 2024, denied any direct agreements with the Adani Group.

Jagan Reddy’s YSRCP said its government had no direct agreement with the Adani Group and the agreement signed in 2021 was between the SECI and power distribution companies (Discoms).

In a post on X, YSRCP said the seven gigawatts power procurement was approved by the Andhra Pradesh Electricity Regulatory Commission in November 2021. Following it, an agreement was signed on December 1, 2021, between SECI and AP Discoms.