US indicts Gautam Adani on bribery allegations: Ruling TDP takes 'wait and watch' approach over possible political fallout in Andhra Pradesh

Industrialist Gautam Adani’s indictment in the United States, with the Department of Justice and the FBI claiming that over Rs 1,750 crore of a total Rs 2,029 crore bribe was paid to a high-ranking Andhra Pradesh official, has sparked political turmoil, particularly in the state of Andhra Pradesh. However, despite the serious allegations of corruption, the ruling Telugu Desam Party (TDP) has maintained a cautious stance, showing little public reaction to the revelations.

The indictment, which involves Adani’s alleged bribery activities to secure solar power contracts, names a “Foreign Official 1” from Andhra Pradesh who is said to have received the bulk of the bribe between May 2019 and June 2024. According to the US court documents, Adani and his associates are accused of offering bribes in exchange for the state electricity distribution companies’ agreement to purchase solar power from Adani's subsidiaries under a scheme designed to benefit his business empire. 

The conglomerate has denied the allegations. In a statement earlier today, Adani Group said: "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied."

In response to the allegations, TDP officials have been measured in their comments, reported The Indian Express. Minister Nara Lokesh Naidu told the newspaper that while the party was aware of the US court case, they would reserve their response for further review. 

“We will look into it in a day or two,” said K Pattabhi Ram, TDP national spokesperson. As reported by The Indian Express, sources within the TDP suggest that there are several reasons for the party’s cautious approach, including the complex nature of the allegations, the need for a careful evaluation of potential political consequences, and the party’s ongoing efforts to court Adani for investments in the state’s power sector.

Sources within the TDP also pointed to Chief Minister N. Chandrababu Naidu’s engagement with the Adani Group, particularly in seeking investments for the state's energy needs. TDP's concerns about jeopardizing relationships with the Adani Group are amplified by their need to avoid repeating the energy crisis that followed the cancellation of several Power Purchase Agreements (PPAs) by the YSR Congress Party (YSRCP) after 2019. 

The TDP’s silence has not gone unnoticed by opposition parties, particularly the Communist Party of India (CPI) and the Communist Party of India (Marxist) (CPI(M)), who have been vocal in condemning the alleged corrupt practices. CPI leaders, who had earlier raised concerns over the deals with Adani in 2021, view the indictment as confirmation of their suspicions. 

“We knew it was a secret meeting,” said CPI state secretary K Ramakrishna, referring to a meeting between Adani and YSRCP chief Y.S. Jagan Mohan Reddy in 2021. The CPI has now called for a judicial enquiry into the matter and demands action from the central government, with CPI general secretary D Raja urging Prime Minister Narendra Modi to address the issue.

Meanwhile, the CPI(M) has called for an independent investigation, citing concerns over the alleged protection afforded to Adani’s business empire by the Modi government. The party has pushed for the Central Bureau of Investigation (CBI) to investigate corruption charges against Adani, who remains a controversial figure due to his close ties with the government.

Earlier today, Congress leader and Leader of the Opposition in the Lok Sabha, Rahul Gandhi had come down heavily on Adani and PM Narendra Modi, accusing the PM of 'colluding' with Adani and demanding that the latter be arrested immediately.

As of now, the TDP’s response remains cautious, leaving opposition parties to lead the charge in challenging the allegations. With the state elections approaching, the political fallout from this scandal could have significant implications for Andhra Pradesh’s political landscape.