By Rishika Sadam

HYDERABAD, Nov 26 (Reuters) - India's Andhra Pradesh

state is reviewing government files and will explore if it is

possible to cancel a power supply contract linked to the Adani

Group, whose billionaire founder has been indicted in the United

States, a top official told Reuters.

U.S. authorities have charged Gautam Adani and seven others

with agreeing to pay bribes of $265 million to unnamed Indian

government officials to obtain solar power-supply contracts in

Odisha, Tamil Nadu, Chhattisgarh, Andhra Pradesh and the federal

territory of Jammu and Kashmir, between 2021 and 2022.

Most of the alleged bribes - $228 million - were paid to a

government official to get Andhra Pradesh's state electricity

distribution companies to agree to purchase power, stated the

U.S. indictment. Adani has said the allegations are baseless.

Andhra Pradesh's state government was "digging into all the

internal files" from the previous administration, under which

the alleged misconduct took place, state Finance Minister

Payyavula Keshav told Reuters on Monday.

"We will also examine what can be done next, like is there a

possibility to cancel the contract ... state government is

looking into this issue closely," Keshav said.

A spokesperson for the Adani Group did not immediately

respond to a request for comment outside regular business hours.

The previous Andhra Pradesh ruling party, YSR Congress

Party, last week denied any wrongdoing.

The U.S. indictment document said that following payment of

alleged bribes to Indian officials, Andhra Pradesh's electricity

distribution companies entered into a power supply agreement to

purchase "approximately seven gigawatts of solar power - by far

the largest amount of any Indian state or region."

The U.S. charges are the biggest setback for billionaire

Adani, whose company shares and bonds have fallen sharply since

the indictment.

French oil major TotalEnergies, which has a 20%

stake in Adani Green, halted further investment into the Adani

Group on Monday.

(Writing by Aditya Kalra

Editing by Christina Fincher)