NEW DELHI – Calls for accountability are mounting against the Modi government from the opposition in the wake of the US bribery and fraud allegations against the Adani Group, even as the business community and global trade partners watch how India handles the reputational fallout.

The government has distanced itself from the corruption scandal engulfing Asia’s second-richest man Gautam Adani, 62, who is perceived to be close with Prime Minister Narendra Modi.

The US Department of Justice (DOJ) on Nov 20 alleged that Adani and his associates, including from another firm called Azure Power, agreed to pay Indian officials bribes of over US$250 million (S$335 million) to secure their commitment to buying solar energy from “one of the world’s largest solar energy projects”.

This refers to a 12 gigawatt solar power project the government awarded Adani Green Energy and Azure Power Global in 2020.

The scandal has cast a long shadow over India’s business and political landscapes.

Parliamentary proceedings ground to a halt for several days amid demands for a debate on the US allegations from the opposition, which has accused the government of shielding Mr Adani and his empire.

Mr Modi has been courting foreign investors by vaunting India as a stable alternative to China amid mounting tensions between Beijing and the US, but the scandal has sp...