Proceedings Against Adani Group Companies Dropped by DRI Authority
A case was opened by the Mumbai branch of the DRI in 2014 against the Adani Group for over-valuing equipment order.
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All proceedings launched by the Directorate of Revenue Intelligence (DRI) against the Adani Group firms have been struck down by KVS Singh, the adjudicating authority of the DRI, by passing of an order, reported The Indian Express.
A case was opened by the Mumbai branch of the DRI in 2014 against the Adani Group for over-valuing equipment order. The size of the alleged scam, in 2014, was approximated to be about Rs 2,000 crore.
A DRI report, made public by The Guardian, claimed that over-valuing of equipment by a subsidiary of Adani group may have resulted in Rs 1,500 crore being siphoned off to a tax haven in Mauritius.
In 2014, The Economic and Political Weekly had pointed out that the Adani Group of Companies was among the 40 importers of coal under investigation by the DRI.
The 280-page adjudication order which was passed on 22 August by Singh read as follows:
The Adani Power Maharashtra Ltd, Adani Power Rajasthan Ltd, Electrogen Infra, Vinod Shantilal Adani and two officials of Electrogen Infra, Jatin Shan and Moreshwar Vasant Rabade are “not liable to penalty under Section 112(a) and 114AA of the Customs Act, 1962”, Singh added.
The IE report further added that the adjudication order will be reviewed by a committee of Chief Commissioners of Customs, Ahmedabad and Mumbai. The review order will have to be passed within 30 days. The DRI will not participate in the review process in anyway. However it can challenge the decision in the Central Board of Excise and Customs before Member (Legal).
(With inputs from The Indian Express.)
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