DRI Requests Permission to Continue Examining Adani Group Regarding Alleged Overvaluation of Coal Imports

In light of possible overvaluation of coal imports, the Directorate of Revenue Intelligence (DRI) is requesting permission to restart an inquiry against the Adani Group. As per a Reuters story, the investigation agency has petitioned the Supreme Court to get authorization to collect evidence from Singapore.

The DRI has been trying to get transaction papers from Singaporean authorities pertaining to the Adani Group’s transactions since 2016. They believe the business paid exaggerated costs to Adani Global Pte, its Singaporean subsidiary, before billing its Indian arms for a number of coal cargoes it bought from Indonesian sources.

The Gautam Adani-led Adani Enterprises and its subsidiaries have successfully opposed legal challenges in both India and Singapore, according to court filings, delaying the release of these documents despite the DRI’s attempts.

The DRI asked the supreme court to overturn a previous lower court decision that allowed the Adani Group to hinder authorities from gathering information from Singapore in a legal file dated October 9.

For its side, the Adani Group has denied any misconduct, claiming that Indian authorities carefully examined its coal shipments prior to their clearance from ports.

At 9:50 AM on Friday, the shares of Adani Enterprises were up 1.01% to Rs 2,227.30 in trade.

In contrast to Adani’s assertions that the agency did not follow “due process,” the DRI said in its petition that it was granted permission by a mutual legal assistance treaty to ask Singapore for information. The 25-page document stressed that the Ministry of Finance and the Ministry of Home Affairs have approved the probe and that it is fully compliant.

In response to a question from the media, the Adani Group said that it had “fully cooperated” with authorities by giving information and papers that were sought more than four years ago, and that no shortcomings or complaints were brought up by investigators after that.

The DRI started examining Adani’s imports in 2014 as part of a larger probe involving 40 businesses, the paper said. According to the FBI, businesses importing coal from Indonesia were allegedly fabricating delivery figures by submitting bills for shipments that went via middlemen in Singapore and other places.

Indian authorities have examined 1,300 shipments involving Adani Group entities via court filings. They claimed that in order to allegedly shift money to tax havens and raise electricity rates in India, the firms “grossly overstated” or “artificially inflated the import value of coal” in comparison to the export value from Indonesia.