Adani Indictment: Corruption in India’s Regulatory System
An indictment has been filed in the United States against Gautam Adani and six other defendants, outlining multiple charges including a hefty bribery scheme and violations of US securities laws. The allegations suggest that bribes were paid to Indian ministers and officials to facilitate business dealings.
Despite these serious accusations, Indian authorities have not taken any action to investigate or address the claims. The Securities and Exchange Board of India (SEBI) has also not completed its investigation into potential market manipulation and securities law violations by the Adani Group, as highlighted in a previous report.
The Solar Energy Corporation of India (SECI) plays a central role in this alleged bribery scheme, as it was involved in the contracts tainted with corruption. SECI contracted with Adani Group and Azure Power to purchase solar power at a higher price, leading to suspicions of bribery to secure deals with state power distribution companies.
Given the gravity of the situation, SECI should file a complaint with the Central Bureau of Investigation (CBI) to initiate a thorough investigation. The Ministry of New and Renewable Energy (MNRE) also has a stake in promoting solar energy and should consider filing a complaint as well.
SEBI is urged to take action on the allegations from the Hindenburg report and the recent indictment against the Adanis. Despite detailed evidence provided to US authorities and ongoing investigations, SEBI has not completed its own inquiry or taken any decisive steps. The regulatory body’s inaction raises questions about its effectiveness in overseeing the capital market.
The handling of the Adani case over the past few years points to potential flaws in India’s governance and regulatory systems. Political cronyism may be compromising the integrity of the country’s institutions, highlighting the need for thorough investigations and accountability.
