Delhi High Court Pauses Order Asking CBI And DRI To Investigate Over-Invoicing Of Imports By Adani Group
The Delhi High Court has paused its order, asking the CBI and the Directorate of Revenue Intelligence (DRI) to “meticulously and expeditiously” look into allegations of over-invoicing of imports by the Adani Group, noting that the case is under consideration of the Supreme Court.
Adani Power Limited had recently filed an application placing on record a copy of the order passed by the Supreme Court, by which an appeal filed by the Commissioner of Customs (Import) against Adani Power Maharashtra Limited was dismissed on March 27, 2023.
The counsel for the Adani firm informed the court that the customs department has filed a petition seeking review of the top court’s order, which is pending adjudication.
The High Court is aware of the seriousness of the accusations and wants a thorough investigation, but this temporary delay is due to the legal process. The court said that they would resume the investigation only after the Supreme Court makes a decision on the review.
“Relevantly, this court vide judgment dated December 19, 2023, in para 52 had passed a direction to the respondents to look into the allegations raised by the petitioner herein against the respondents, one of which is the present applicant- M/s Adani Power Limited”, the high court, while disposing of the application, said.
It said, “In view of the fact that review petition preferred by the department is sub-judice before the Hon’ble Supreme Court; the directions passed by this court in para 52 of judgment dated December 19, 2023 in respect of M/s Adani Power Maharashtra Limited and M/s Adani Power Rajasthan Limited (now M/s Adani Power Limited) are kept in abeyance awaiting outcome of the said review petitions.”
The Adani Coal Scam refers to the overpricing of coal imports by as much as 52%, resulting in excessive charges for Indian consumers and businesses. The Adani Group is one of the largest coal importers in the country.
According to a report by Reuters, the Indian revenue agency also suspects that the Adani Group inflated the prices of Indonesian coal exports on paper to its Singapore unit, Adani Global Pte, and then to its Indian subsidiaries.
On December 19, 2023, the high court directed the two federal probe agencies to meticulously and expeditiously look into the allegations of over-invoicing of imports by various power-generating companies in India, including the Adani Group and the Essar Group, to ascertain the factual position and take appropriate action against the erring firms.
