Adani Group refutes allegations of 'low-grade' coal supply, shares unaffected
Adani Group has categorically denied allegations of supplying low-grade coal as high-quality coal, to a state government-owned power generation company. The accusations were made in a report by the Financial Times, citing evidence from the Organized Crime and Corruption Reporting Project (OCCRP). The report alleged that Adani Group bought 'low-grade' coal from an Indonesian company in January 2014, and sold it to the Tamil Nadu Generation and Distribution Company (TANGEDCO) as high-quality coal.
Adani Group's response to allegations
An Adani spokesperson dismissed the allegations as "false and baseless." The spokesperson clarified that, "the suggestion that Adani Global Pte Ltd supplied to TANGEDCO inferior coal, as compared to the quality standards laid down in the tender and PO [purchase order], is incorrect." The company further stated that all supplied coal is tested for quality at the receiving plant, irrespective of the supplier's declaration.
Adani's stance on previous over-invoicing charges
The Adani Group has previously faced allegations of over-invoicing of coal imports and equipment. The Delhi High Court in December directed the Central Bureau of Investigation and Directorate of Revenue Intelligence, to investigate these claims. However, the group had rejected such 'over-invoicing' charges, stating that the issue "was conclusively settled by India's highest court of law." They also noted that a show cause notice from DRI claiming over-valuation in the import of coal, was quashed by the appellate tribunal (CESTAT).
Adani Group shares show resilience amid allegations
Despite the allegations, Adani Group shares showed little impact and recovered by market close today. Adani Enterprises closed 0.61% higher at ₹3,134.75 after hitting a low of ₹3,075 during trade. Similarly, Adani Ports ended at ₹1,378.10, down 0.53% from its day's low of ₹1,364.35 while Adani Total Gas ended 0.47% higher at ₹934.55.
