Adani Storm is Complicating Things for India's Major Political Parties

An investigation by the central bureau of investigation (CBI), joint-parliamentary committee (JPC) and a Supreme Court (SC) monitored probe are the demands of major opposition parties to the NDA-led government of India against industrialist Gautam Adani and seven others accused in the $250 million bribery scheme by the US prosecutors.

The US court’s indictment order alleged that the renewable energy arm of the Adani Group, Adani Green Energy bribed Indian officials in five states, including Andhra Pradesh, Tamil Nadu, Odisha, Chhattisgarh and Jammu & Kashmir, to secure solar energy contracts between 2020 and 2024.

The Adani Group has time and again found itself in the centre of the storm, particularly after the American short-seller Hindenburg Research accused the conglomerate of stock manipulation and financial misconduct in January 2023. But this time it's not just the Adani empire or the securities and exchange board of India (Sebi) chief, Madhabi Puri Buch, who will have a rockier ride; the governments of the states mentioned in the order will also go down the similar road of scrutiny.

War of Words Over Adani Controversy

In India it has often been the case that an opposition party in the centre is a ruling party in the state government and vice-versa. While the political scenario isn’t unique in this case, it is further likely to complicate the Adani storm for politicians and parties alike, regardless of belonging to the opposition or ruling side.

The leader of the opposition (LoP) in the Lok Sabha, Rahul Gandhi, has persistently and openly linked Prime Minister Narendra Modi’s political interests with businessman Gautam Adani’s corporate interests. In fact, after the indictment order became public, Gandhi was the first opposition leader to hold a press conference to demand Adani’s arrest. He added that regardless of which party was or is in power in the states, all those involved in the bribery scheme must be probed and punished. Countering Gandhi, BJP MP Sambit Patra said four states mentioned in the order were then ruled by the opposition parties. He didn’t mention Jammu and Kashmir, which was then a centrally administered Union Territory with no legislative assembly.

“It wasn’t the BJP or BJP supported government. In Tamil Nadu, it was DMK’s government, in Odisha, it was BJD’s government, Chhattisgarh was ruled by Congress’s Bhupesh Baghel, Andhra Pradesh was headed by YSR Congress-led Jagan Mohan Reddy,” said Patra in a press meet.

Also Read: Adani Group Faces its Biggest Test in the Battle for Investors' Trust  

Out of the five states mentioned, Adani Group paid nearly Rs 1,750 crore out of total Rs 2,029 as a bribe to Andhra Pradesh state officials and hence has cast a shadow of doubt around the former YS Jagan Mohan Reddy-led Andhra Pradesh government. Although the current AP state government headed by chief minister N. Chandrababu Naidu is undergoing a review of the power sale agreement (PSA) signed with the Adani Group, the CM is seen to be dealing with the situation carefully, according to Reuters.

The alleged bribery scheme might be a perfect opportunity for Naidu to take a dig at his political rival Jagan Mohan Reddy. Reddy, during his term, had put Naidu behind bars in the alleged multi-crore ‘Skill development scam’.

Gandhi has called out PM Modi for being in a nexus with billionaire Gautam Adani and Reliance chairman Mukesh Ambani multiple times in various public speeches. However, what shocked everyone was when PM Modi, while addressing a rally in Telangana during the 2024 general elections, questioned Rahul Gandhi that he has stopped taking the name of the businessmen; is it because there are some “deals” that happened between them.

“For five years, Rahul Gandhi was chanting – five businessmen, five businessmen. Then he started saying Ambani-Adani. But ever since elections have been announced, he has stopped abusing Ambani-Adani...How much has the prince taken from Ambani-Adani this election. How many bags of black money has he got,” said Modi.

It’s the complicated relationship filled with past differences that the politicians across political parties have that will further make the investigation complex.

Additionally, Rahul Gandhi, in a press conference on November 21, said that as LoP it is his responsibility to bring this matter up in Parliament. While both houses of Parliament were adjourned on day one of the winter session on Monday, as the opposition members were seen voicing various issues, including the Adani bribery scheme.

Consequently, how the differences between politicians and political parties will play out in parliament in the coming days of the winter session will be something to keep an eye on.