Court orders CBI to look into alleged over-invoicing by Adani, Essar Groups

The Delhi High Court on Tuesday directed the Central Bureau of Investigation (CBI) and Directorate of Revenue Intelligence (DRI) to look into 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.

“This court finds it appropriate to direct the respondents to meticulously and expeditiously look into the allegations of the petitioners to unearth actual factual position and take appropriate actions against the erring companies, if any, as per law,” the High Court bench ordered.

The High Court’s direction came in response to two Public Interest Litigations (PIL) filed by the Centre for Public Interest Litigation, represented by Advocate Prashant Bhushan, and another PIL filed by activist Harsh Mander, Live Law reported.

The applicants had sought an SIT probe into the reports of the Directorate of Revenue Intelligence (DRI) concerning various private power-generating companies accused of over-invoicing.

Last month, the DRI sought permission from the Supreme Court to restart a probe into the Adani Group for the alleged overvaluation of coal imports and also requested the top court’s approval to collect evidence from Singapore.

The DRI, since 2016, has been trying to procure transaction documents related to Adani’s dealings from Singapore authorities. The agency suspects many of the group’s coal shipments imported from Indonesian suppliers were first billed at higher prices on paper to its Singapore unit, Adani Global Pte, and then to its Indian arms, according to news agency Reuters.

The revenue agency began looking into Adani’s imports as part of a broader investigation into 40 companies that started in 2014.