How The Costs Of The Adani Bribery Scandal Will Be Borne By India’s Electricity Consumers & May Increase Power Cuts

For over 20 years, as Gautam Adani first grew in Gujarat and then spread his business empire across India—from a turnover of Rs 3,300 crore in 2000 to Rs 309,000 crore in 2024 —allegations of preferential treatment by governments in New Delhi and in the states accompanied his expansion.

The growth of his multibillion-dollar empire, now spread across six countries, was primarily built in India on three pillars: constant expansion into new industries, inorganic growth and debt. Each pillar has carried the taint of these allegations. 

The group’s expansion was aided by bidding norms changed to favour the Adani group—as in the case of airports—to facilitate his entry. Similarly, the Dharavi Redevelopment Project to makeover to India’s largest slum in Mumbai was recast in 2020 such that the previous winner was not eligible any longer. 

Its inorganic growth (acquisitions) was benefitted from a curious overlap where state agencies cracked down on firms Adani was eyeing—such as GVK’s Mumbai airport, although GVK group vice chairman Sanjay Reddy denied such pressure—or the ports of Gangavaram and Krishnapatnam, run by Andhra Pradesh businessman D V S Raju till 2021. In 2023, Raju too denied any coercion. 

The Group’s debt-backed growth, sizably raised by pledging shares, was accompanied by allegations of share-price rigging—first reported by Indian newsrooms (here and here) and then by US company Hindenburg Research (here)—none were investigated.

There are other instances of preferential treatment. In 2018, Adani’s power project in Mundra, Gujarat, was extricated from bankruptcy proceedings even as its peers were not. Its SEZ in Mundra came up without an environmental clearance. Complaints about the Adani Group’s looming monopolisation in sectors like ports went unconsidered. Other inquiries, like the Department of Revenue Intelligence’s 2014 investigation into over-invoicing of imported coal, have gone nowhere as well.

Missing within this litany of favours, however, was the quid pro quo: what was in it for those who supposedly bestowed these favours? Policy favours were whispered about as a fourth pillar that lent stability to the empire but there was little proof. Adani didn’t show up in the electoral bonds list. Apart from his Group’s disclosures on political party donations, there was little to suggest that policy-makers were benefitting by favouring the conglomerate.

With its investigation, the Securities Exchange and Commission (SEC) appears to have found that quid pro quo, alleging on 20 November 2024 that “Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials to secure their commitment to purchase energy at above-market rates that would benefit Adani Green and Azure Power”.

If these allegations are correct, just think of the institutional failures at hand. There is SECI, which floated a strange tender. The government of India, which extended transmission favours to the project to bring its costs down. The state governments which bought the power at higher rates. The state power departments — and state and central power regulators — which stayed silent. The media, which missed these transactions entirely. Of such lapses is impunity made.

It makes one think of tipping points. At what point do these lapses become so normalised that the rule-based order ceases to exist? And — since the lawlessness of this present moment is rather evident — when did we cross that rubicon?



Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


I am an Indian journalist with interests in energy, environment, climate and India’s ongoing slide into right-wing authoritarianism. My book, Despite the State, an examination of pervasive state failure and democratic decay in India, was published by Westland Publications, India, in January 2021. My work has won the Bala Kailasam Memorial Award; the Ramnath Goenka Excellence in Journalism Award; five Shriram Awards for Excellence in Financial Journalism; and, more recently, been a finalist at the True Story Award and GIJN’s Global Shining Light Awards. Write to me at despitethestate@protonmail.com.

Reviews

…une plongée dans les failles béantes de la démocratie indienne, un compte rendu implacable du dysfonctionnement des Etats fédérés, minés par la corruption, le clientélisme, le culte de la personnalité des élus et le capitalisme de connivence. (…a dive into the gaping holes in Indian democracy, a relentless account of the dysfunction of the federated states, undermined by corruption, clientelism, the cult of the personality of elected officials and crony capitalism).” Le Monde

…a critical enquiry into why representative government in India is flagging.Biblio

…strives for an understanding of the factors that enable governments and political parties to function in a way that is seemingly hostile to the interests of the very public they have been elected to serve, a gross anomaly in an electoral democracy.” Scroll.in

M. Rajshekhar’s deeply researched book… holds a mirror to Indian democracy, and finds several cracks.The Hindu

…excels at connecting the local to the national.Open

…refreshingly new writing on the play between India’s dysfunctional democracy and its development challenges…Seminar

A patient mapping and thorough analysis of the Indian system’s horrific flaws…” Business Standard (Image here)

33 മാസം, 6 സംസ്ഥാനങ്ങൾ, 120 റിപ്പോർട്ടുകൾ: ജനാധിപത്യം തേടി മഹത്തായ ഇന്ത്യൻ യാത്ര… (33 months, 6 states, 120 reports: Great Indian journey in search of democracy…)” Malayala Manorama

Hindustan ki maujooda siyasi wa maaashi soorat e hal.” QindeelOnline

What emerges is the image of a state that is extractive, dominant, casteist and clientelist.Tribune

…reporting at its best. The picture that emerges is of a democracy that has been hijacked by vested interests, interested only in power and pelf.Moneycontrol.com

Book lists

Ten best non-fiction books of the year“, The Hindu.

Twenty-One Notable Books From 2021“, The Wire.

What has South Asia been reading: 2021 edition“, Himal Southasian

Interviews

Journalism is a social enterprise…,” Booksfirst.in.

Democratic decay at state level: Journalist M Rajshekhar on book ‘Despite the State’,” The News Minute.

Covid-19 en Inde : “des décès de masse” dont un “État obscurantiste est responsable,” Asialyst.

Allusions/Mentions

JP to BJP: The Unanswered Questions“.
Mahtab Alam’s review of “JP to BJP: Bihar After Lalu and Nitish”.

Urban History of Atmospheric Modernity in Colonial India“. Mohammad Sajjad’s review of “Dust and Smoke: Air Pollution and Colonial Urbanism, India, c1860-c1940”.

Westland closure: Titles that are selling fast and a few personal recommendations,” by Chetana Divya Vasudev, Moneycontrol. (Because this happened too. In February, a year after DtS was released, Amazon decided to shutter Westland, which published the book. The announcement saw folks rushing to buy copies of Westland books before stocks run out.)

Time to change tack on counterinsurgency” by TK Arun, The Federal.

All Things Policy: The Challenges of Governing States” by Suman Joshi and Sarthak Pradhan, Takshashila Institute (podcast).

The Future of Entertainment“, Kaveree Bamzai in Open.

On What India’s Watching“, Prathyush Parasuraman on Substack.

The puppeteers around us“, Karthik Venkatesh in Deccan Herald.

Will TN election manifestos continue ‘populist’ welfare schemes?“, Anna Isaac for The News Minute.

Why wages-for-housework won’t help women“, V Geetha in Indian Express.

The poor state of the Indian state“, Arun Maira in The Hindu.

Book discussions

14 April, 2024: The costs of political corruption, Bangalore International Centre.

27 May, 2023: Safe Spaces/Why Indians live despite the state. TEDx Bangalore.

12 November, 2022: Stop Loss: Overcoming the systemic failures of the Indian State. Tata Literature Festival, Mumbai.

26 December, 2021: Rangashankara, Bangalore, a discussion with Dhanya Rajendran.

16 November: Rachna Books, Gangtok, a discussion with Pema Wangchuk.

29 August: Books In The Time of Chaos, with Ujwal Kumar.

21 May: Hyderabad Lit Fest with Kaveree Bamzai and Aniruddha Bahal.

28 March: Paalam Books, Salem, Tamil Nadu.

19 March: The News Minute, “Citizens, the State, and the idea of India

6 March: Pen@Prithvi, with Suhit Kelkar

20 February: A discussion between scholars Usha Ramanathan, Tridip Suhrud, MS Sriram and me to formally launch Despite the State.

6 February: DogEars Bookshop, Margoa.

5 February: The Polis Project, Dispatches with Suchitra Vijayan.

30 January: Founding Fuel, “Systems Thinking, State Capacity and Grassroots Development“.

25 January: Miranda House Literary Society

Aadhaar Agriculture Banking correspondents Bihar BJP Books Cash transfers Climate change Coal Coalscam Common BC Auctions Corruption Demonetisation Ear To The Ground Energy Energy Transition Environmental governance Financial Inclusion Forests Gujarat Healthcare Idiocy India Informal economy Journalism Madhya Pradesh Mandis Microfinance Mining Mizoram MoEF NDA NREGA Odisha Oligarchy Pollution Privacy Punjab Reserve Bank of India Rivers Tamil Nadu Tribals UIDAI UPA Welfare Programmes