Former bureaucrat demands judicial probe into alleged Adani bribery scheme

Former Union secretary E.A.S. Sarma has written to cabinet secretary T.V. Somanathan, demanding the Indian government institute a judicial enquiry into what he describes as “multiple undue favours” extended to the Adani Group and investigate serious bribery allegations now before United States authorities. Sarma’s letter, dated 25 January, follows earlier correspondence raising concerns about alleged regulatory inaction in India.

Sarma referred to the case filed by the US Securities and Exchange Commission (SEC) and criminal indictments announced by the US Department of Justice, which accuse senior Adani officials of paying bribes to Indian government functionaries to secure profitable solar contracts in Andhra Pradesh. The former bureaucrat questioned why India’s own agencies have not initiated parallel enquiries.

Citing a recent Indian Express report, Sarma noted that the Union law ministry declined to serve US SEC summons to Gautam Adani and Sagar Adani on technical grounds, including the absence of an ink signature and an official seal. He criticised what he termed the government’s reluctance to assist foreign regulators under the Hague Service Convention framework, remarking that the refusal raises concerns about transparency.

Meanwhile, it has been reported that Adani Group promoters directly approached a US court on 23 January to submit their defence. Sarma questioned whether the Centre had reflected on the gravity of the allegations underpinning the SEC and DOJ action.

“Are not the powers that be in the NDA government worried about corrupt practices alleged to have been committed on Indian soil, resulting in a huge cost burden imposed on millions of electricity consumers in AP?” he asked.

According to US filings cited by Sarma, investigators allege that: “Between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme).”

The filings detail alleged electronic messaging, meeting records and internal spreadsheets documenting bribe arrangements. Sarma argued that such charges “are far too serious in content to be blindly ignored”, especially given the potential impact on Indian consumers forced to buy costlier electricity.

Sarma criticised domestic regulators such as SEBI and investigative bodies such as the CBI for not initiating their own probes despite the availability of evidence from US authorities. “It has not done it yet,” he wrote of SEBI. He claimed the CBI could have contacted the FBI for details but had not done so, questioning whether any “external agency within the NDA government” was blocking action.

He warned that the Prevention of Corruption Act, 1988 allows prosecution not only of bribe givers and takers but also of “abettors” who enable corruption through inaction. Quoting Section 45 of the Bharatiya Nyaya Samhita, he noted that someone who “intentionally aids, by any act or illegal omission” is punishable.

Sarma called on the government to:

1. Institute a judicial enquiry into alleged undue favours to the Adani Group.

2. Direct SEBI, CBI and other agencies to collaborate with US counterparts and conduct an independent domestic investigation.

3. Prosecute all parties — including bribe givers, bribe takers and abettors — if allegations are proven.

He argued that Indian investors and electricity consumers deserve protection irrespective of US court proceedings, and that the matter should not be left solely to American regulators.

Sarma concluded by warning that if the administration fails to act, “the only alternative left to concerned citizens like me is to seek judicial intervention”.

The Centre has not immediately responded to the latest letter, at least in the public domain, and the Adani Group has previously denied wrongdoing in international filings. The US proceedings remain ongoing.