There was more bad news for the beleaguered Adani group with reports suggesting that the Andhra Pradesh government was likely to suspend a solar power purchase deal linked to Adani Green Energy and its affiliate units.

The state will ask the Centre and the Solar Energy Corporation of India (SECI), which awards power supply contracts to companies like Adani Green, to investigate the charges, Reuters said quoting sources.

“The decision will be taken very soon,” another source said. The power supply to Andhra Pradesh under the agreement was scheduled to start from next year.

Andhra Pradesh finance minister Payyavula Keshav said that it was “digging into all the internal files” from the previous regime, under which the alleged misconduct occurred.

“We will also examine what can be done next, for instance, is there a possibility to cancel the contract ... the state government is looking into this issue closely,” the minister added.

The US Department of Justice had said in its indictment that the Adani group had bribes worth $ 265 million (over Rs 2100 crore) to officials in five states including Andhra Pradesh to induce them to buy the costly solar power it produced and sold to the SECI.

“The Andhra Pradesh bribe payment was approximately $200 million,” the Securities and Exchange Commission, the US market regulator, said in a separate complaint to the Court of the Eastern District of New York.

The problems for the Adani group are also deepening in Sri Lanka where it won a contract to build a deepwater container terminal in Colombo.

The Colombo port terminal is a joint venture between Adani Ports and SEZ Ltd, Sri Lanka Ports Authority and Lankan conglomerate John Keells Hodlings. The Adani group has a 51 per cent stake in the venture.

In Colombo, Sri Lanka’s finance and foreign ministries were reviewing the accusations, cabinet spokesperson Nalinda Jayatissa told reporters on Tuesday, adding that the government would consider all aspects of the group’s projects in the Indian Ocean island.

Earlier, the US International Development Finance Corp said it would review its prior agreements to lend $553 million to a Sri Lankan port development that is backed by the Adani group.

Meanwhile, the Adani Group said French energy giant TotalEnergies’ decision to pause new investments in the group would not have any material impact on operations and growth plans as no new funding was under discussion.