Industry

Power Secretary says no fresh query from DRI or ED on Adani case

A file picture of Adani Group Chairman Gautam Adani.

A file picture of Adani Group Chairman Gautam Adani.   | Photo Credit: PTI

As Congress general secretary Ajay Maken the Congress led UPA government had initiated an inquiry on February 5 2013 into the practice of over-invoicing on import of machinery by subsidiary of Adani enterprises Ltd.

Union Power Secretary Ajay Kumar Bhalla on Monday told standing committee on Energy that DRI or ED have not sought any details regarding alleged financial fraud by Adani Group in a Maharashtra based power project.

The Guardian in a detailed report published on August 15 claimed that the Adani Enterprise Ltd. and its subsidiaries siphoned off the money from a Maharashtra based power project through over-invoicing.

According to sources CPI (M) MP M.B. Rajesh raised the question. Mr. Rajesh asked Mr. Bhalla for Power Ministry’s role in the matter and if there has been any further investigation by ministry themselves, MPs who attended the meeting told The Hindu.

The power secretary spoke at length on the recent power sector’s contribution to NPA (non-performing assets). However when he was specifically asked if Power Ministry is inquiring into the case, Mr. Bhalla told Parliamentarians that he has no information other than the media reports. He also added that neither DRI nor Enforcement Directorate has gotten in touch with the ministry for details on the issue.

The Congress too on Friday demanded a Supreme Court monitored probe in the case. It also alleged that the NDA government is going slow on the case. As Congress general secretary Ajay Maken the Congress led UPA government had initiated an inquiry on February 5 2013 into the practice of over-invoicing on import of machinery by subsidiary of Adani enterprises Ltd. On May 15 2014, a day before the results of 2014 Lok Sabha polls, the DRI issued a 97-page show cause notice.

The Guardian story quoting from these documents writes on a complex money trail through South Korea, Dubai and eventually to an offshore company in Mauritius. The Mauritius firm is controlled by Vinod Shantilal Adani, the older brother of billionaire Adani Group Chief Executive Gautam Adani. The total money according to the Guardian story could be to tune of $235 million dollars parked in tax haven. This was done as per reports by utlising network of offshore companies to purchase electrical equipment and then sell it to its Indian counterpart at over 86% above the original value.

The case has earlier been reported in Economic and Political Weekly in 2014.

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Printable version | Mar 26, 2020 11:19:53 PM | https://www.thehindu.com/business/Industry/power-secretary-says-no-fresh-query-from-dri-or-ed-on-adani-case/article19538731.ece

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