Silence Speaks Volumes: The Implications of Government Inaction on the Big Man Scandal
On November 20, the United States District Court of New York had issued a warrant against Gautam Adani and his nephew Sagar Adani under the Foreign Corrupt Practices Act, or FCPA. Today, considered to be the greatest financial goliath of the age, Gautam Adani has steered the Adani Group into achieving a status beyond all economies, way beyond those of India. Soaring superiority has made the group remain aloof to the concerns of government, resulting in financial struggles and political ambiguity.
It was established in 1988 by brothers Gautam Adani and Mansukh Bhai Adani of Gujarat with an initial seed capital of ₹5 lakh. Once it purchased Mundra Port in 1990, the value had greatly shot up. Support from the state governments as well as all institutions financially was also much for the increasing value of this company, which just grew along with a shift of the political scenario in the state of Gujarat. The Gujarati model with which Modi rose to power with Adani has also seen a close friendship evolve between the two. Economic growth, especially in the import, export, and energy markets, which currently generate high amounts of revenue, is central to the focus of election campaign rhetoric. The Adani Group diversified into airports, cement, and data centers and emerged as an economic giant. The company holds significant power stations, airports, and ports that create economic imbalances. This company has globally established itself by penetrating other countries and influencing those countries’ public services. Among the richest persons in India and ranked 17th all over the world, there stands Gautam Adani at an approximated net worth of $64.9 billion.
The Adani Group also led the country’s list both in renewable and nonrenewable energy productions. This business houses the largest privately owned thermal power producer in India, which provides coal to public power stations. Coming out of this business is also Adani Green Energy Limited (AGEL), a leading renewable energy company with a portfolio of solar, wind, and hybrid power plants dedicated to reducing pollution. The other two companies are Adani Electricity and Adani Energy Solutions, which build power grids and sell electricity to the state and central government on agreements. SECI declared Adani Green and Azure Power as successful bidders in tenders for solar power in 2019-20 with government support to install the solar plants.
This will result in 400,000 jobs and reduce CO2 emissions by 900 million metric tones valued at $6 billion. However, the allegations of $265 million paid in bribes to officials from five states tainted the project. US-based Azure Power has also committed corrupt practices in India that offend FCPA. For its part, Adani had issued bonds in the United States valued at $3 billion. The US intelligence agency discovered how the money was being misused to make corrupt deals. International recognition is further marred as foreign funding through shell companies was being done for the schemes of the Adani Group. According to reports, Adani Power is selling low-grade coal to Tamil Nadu, thereby raising levels of pollution. The Indian government stays mum over the issue where the group still consumes non-renewable energy, raises pollution levels, and increases demand for green energy, further increasing the prices of electricity. This has made India face political and economic instability alongside its environmental needs, shifting quickly to green energy. With a growing concern for the climate and reduction with fossil fuels, the nation is being pushed toward sustainable alternatives.
Right-wing parties in India have tried to face these issues in parliament but have found it very difficult to put such practical solutions in place. Despite these factors, the constant pressure exerted by such political pressures will force the government to take action along with the other parties involved. Thus, the future of Indian development will see an improved and more holistic approach towards environmental concerns coming into prominence, which will focus on green energy measures. So, the eventual changes would lead to a catalyst for sustainable change and innovation in the long-term sustainability of energy policies.
