All About The $6 Billion Solar Deal That Landed Adani Group In Trouble As US Prosecutors Allege $250 Million Bribery Scheme

The Adani Group, led by billionaire Gautam Adani, is embroiled in controversy following allegations by US prosecutors of a $250 million bribery scheme involving solar energy contracts. This comes just after the conglomerate’s recovery from the Hindenburg Research accusations of stock manipulation and fraud. 

The charges centre around claims that the group paid bribes to Indian officials between December 2019 and July 2020 to secure lucrative renewable energy deals while seeking investments from US stakeholders.

At the heart of the controversy is a deal announced in June 2020, where Adani Green Energy Limited (AGEL) declared its win of a "manufacturing-linked solar agreement" from the Solar Energy Corporation of India (SECI). 

Valued at $6 billion, the agreement involved developing 8 GW of solar projects alongside establishing 2 GW of solar cell and module manufacturing capacity. This initiative, described by the company as “the world’s largest solar award,” was expected to generate over $2 billion in post-tax profits over two decades while displacing 900 million tonnes of carbon dioxide.

Gautam Adani called it a “landmark solar award,” emphasising its dual objectives of job creation and decarbonisation, stating that renewable energy would become the "world’s cleanest and most economical fuel."

The project was part of SECI's innovative solar tenders, which attracted significant interest. Reports from November 2019 revealed intense competition, with bids surpassing the offered capacity, driven by safeguards against subsidized imports from Chinese firms.

The announcement of charges came just hours after Adani raised $600 million on Wednesday through the sale of 20-year "green" bonds.

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