Bribery Storm

Gautam Adani, the magnate who arguably symbolizes the economic ascendancy of the ‘new’ India, now finds himself entangled in a web of allegations after U.S. prosecutors indicted him, his nephew Sagar Adani, and six associates in an alleged $250 million bribery scheme. The charges are concerned with fraud, international complicity and the misuse of power to secure lucrative solar energy contracts.

The indictment, issued by the Eastern District of New York, accuses the defendants of bribing Indian officials to facilitate the purchase of solar power from the state-owned Solar Energy Corporation of India (SECI). The alleged scheme sought to transform undelivered energy deals into a $2 billion post-tax profit over two decades. But the fallout has been swift: a $600 million bond offering cancelled, share prices of Adani companies plunging by nearly 20%, and a renewed debate over the intersection of business and politics in India.

SECI’s inability to find buyers for its power contracts reflects the inefficiencies of India’s energy sector, where opaque processes and political interference are commonplace. When SECI failed to secure agreements with state electricity companies, bribes became the supposed lubricant to move deals forward. This is not merely an Adani problem - it is symptomatic of a system that often rewards those with the deepest pockets and the most powerful connections. While a thorough probe is needed, the timing of the U.S. indictment is curious. It coincides with mounting global scrutiny of India’s corporate governance, particularly following the Hindenburg Research report earlier this year, which had accused the Adani Group of stock manipulation.

The biggest opposition party, the Congress, is always eager to connect the dots between the embattled tycoon and Prime Minister Narendra Modi. Rahul Gandhi, leader of the Congress party, wasted no time painting the scandal as proof of a deeper collusion between PM Modi and his billionaire ally. But this narrative glosses over uncomfortable truths. The bribery allegations date back to 2021-2022, a period when several implicated states were under Congress or allied rule. From Chhattisgarh to Tamil Nadu, governments of varying political hues engaged with the Adani Group, benefiting from the infrastructure investments it promised. If the bribes indeed flowed, they implicate not just Adani but also a political ecosystem spanning the ideological spectrum.

There is also the matter of the U.S.’s motivations. The indictment’s timing raises questions about the West’s broader agenda concerning India. Critics argue that such cases are part of a pattern — whether through NGOs, think tanks, or legal actions — to undermine India’s rising global stature. The narratives, whether about alleged electoral interference, human rights, or now corruption, serve to project India’s success as precarious and undeserved. This case highlights the dual standards at play. While the indictment demands accountability from Adani and his associates, it must not distract from the systemic failures that allowed such corruption to take root.