The Delhi High Court has directed the Central Bureau of Investigation (CBI) and Directorate of Revenue Intelligence (DRI) to investigate the allegations of over-invoicing of coal imports and equipment by several companies, including Adani Group and Essar Group. The court asked the central agencies to take action in accordance with the law.
The order came in response to two Public Interest Litigations (PIL) filed by the Centre for Public Interest Litigation and activist Harsh Mander. The petitioners had sought an SIT probe into the reports of the DRI concerning various private power-generating companies accused of over-invoicing.
Over-invoicing is a practice of inflating the value of imported goods to evade taxes, inflate costs, and siphon off money abroad. The DRI suspects that many of the group's coal shipments imported from Indonesian suppliers were first billed at higher prices on paper to its Singapore unit, and then to its Indian arms.
The DRI, since 2016, has been trying to procure transaction documents related to Adani's dealings from Singapore authorities. The agency began looking into Adani's imports as part of a broader investigation into 40 companies that started in 2014.
The High Court's direction is a significant development in the case, as it represents the judicial intervention in the matter. The court also observed that the allegations are of serious nature and have a huge impact on the national economy and public interest. The court said that the agencies should look into the allegations meticulously and expeditiously to unearth the actual factual position and take appropriate actions against the erring companies, if any, as per law.
