Jagan Reddy rejects charges against Adani, says agreement between government units

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After the Tamil Nadu government and the Biju Janata Dal (BJD) in Odisha, former Andhra Pradesh Chief Minister Jagan Reddy has rejected US charges that government officials took bribes for a power purchase agreement. The president of the YSR Congress Party has said that the deal was between government agencies and no private parties, including the Adani Group, were involved. 


Addressing a press conference on Thursday, Mr Reddy said the Solar Energy Corporation of India (SECI),  which is a central government-run public sector unit made an offer for power to several states, including Tamil Nadu, Andhra Pradesh and Odisha, at Rs 2.49 per unit. Pointing out that Andhra Pradesh had never bought power at a cheaper rate, the former chief minister said that other incentives were also offered to the state, including some waivers, which would have saved the government money.


The YSRCP chief emphasised that the contract was between SECI, the Andhra Pradesh government and the state power distribution company and there was no question of any other agency intervening. He said that some media houses with political motives are putting out names suggesting bribery and that he would sue Eenadu and Andhra Jyothy, which he described as controlled by Chief Minister and TDP chief Chandrababu Naidu, for Rs 100 crore. 


Mr Reddy said no bribery was involved and, responding to a question on whether Mr Naidu could cancel the deal, the former chief minister said it would not be wise to do so. 


Asked about his meetings with Adani Group Chairman Gautam Adani, Mr Reddy said Mr Adani has several ongoing projects in Andhra Pradesh and it is never unusual for the head of a state to be meeting with industry leaders. He said the meetings are intended to build a relationship of confidence and trust. 


Earlier, the BJD and the Tamil Nadu government had also rejected the allegations. 


The former Energy Minister of Odisha, Pratap Keshari Deb, had said that the agreement was to procure 500 MW of renewable energy from the SECI at the lowest rates discovered by the PSU. "There was no engagement with any private party whatsoever, including the Adani Group," he had said earlier this month.


Tamil Nadu Electricity Minister V Senthil Balaji said the state has an understanding to buy power only from a firm owned by the Union government.


"I would like to first clarify that as regards TN Generation and Distribution Corporation (TANGEDCO), there has been no kind of commercial relationship with Mr Adani's company during the past three years (after the DMK formed the government in May 2021)," Mr Balaji had said. 

'Fully Compliant'

The Adani Group has firmly denied a US government department report alleging bribery for power contracts.


"All possible legal recourse will be sought. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws," the Group said in a statement.


Senior lawyer and former Attorney General of India Mukul Rohatgi has also punched holes in the allegations against the Adani Group and said Mr Adani and his nephew Sagar Adani have not been accused of bribery or obstructing justice in the US.


(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)