Adani Bribery Scandal: SECI& Power Ministry’s Silence Speaks Volumes – Moneylife
In the wake of the recent Adani bribery scandal, one major player remains surprisingly silent—Solar Energy Corporation of India (SECI). Despite being at the heart of the legal proceedings in the US and civil complaints by the Securities Exchange Commission (SEC), SECI has opted for silence. This leaves us questioning SECI’s involvement in the scandal, particularly after France-based Total Energies decided to halt any further financial contributions to the Adani group.
Following Total Energies’ statement, shares of Adani Green Energy Ltd (Adani Green) took a hit, closing 8% lower on November 25th. Total Energies also revealed ignorance of the ongoing investigations into the alleged corruption scheme, confirming the US Department of Justice charges against the Adani group.
In a nutshell, Adani Green Energy Limited embarked on a massive bribery scheme to secure power purchase contracts totaling hundreds of millions of dollars. This scheme aimed to position Adani Group as the world’s largest private solar power producer. Despite raising significant funds through a corporate bond offering, the Adani group failed to comply with US anti-bribery laws under the Foreign Corrupt Practices Act (FCPA). The deal was intended to persuade state DISCOMs to purchase power at inflated prices, a move that heavily depended on SECI.
The question arises—how did SECI arrive at agreeing to these exorbitant prices without proper validation or consultation with relevant stakeholders? Former Union Secretary EAS Sarma has raised concerns about the Ministry of Power directives, paving the way for potential corruption in the solar sector.
It’s critical to scrutinize the process that led to SECI’s decisions to avoid unnecessary financial burden on Indian consumers and businesses. This scandal shines a light on the intricacies of the solar power sector and urges deeper investigations into the involvement of multiple stakeholders.
