Government seeks to restart probe into Adani's coal imports case
The Directorate of Revenue Intelligence (DRI) has asked the Supreme Court to restart an investigation into the Adani Group for alleged overvaluation of coal imports. Investigators are seeking permission to gather evidence in Singapore to probe if Adani Group inflated the prices of coal shipments from Indonesian suppliers. Adani Group is suspected of invoicing its Singaporean subsidiary, Adani Global Pte, at higher prices for coal shipments from Indonesia before selling them to its Indian arms.
Adani Group denies wrongdoing
Headed by billionaire Gautam Adani, the Adani Group has refuted any misconduct in the coal import case. The company asserts that Indian authorities evaluated its coal shipments before releasing them from ports. In a statement to Reuters, Adani Group mentioned that it had fully co-operated with the authorities by supplying information and documents requested over four years ago, and that "no deficiency or objection" was communicated by investigators afterward.
Legal battles in Singapore and India
Adani Enterprises, along with its subsidiaries have continuously used legal strategies in India and Singapore to prevent the release of documents, as seen in court papers. In 2019, on Adani's challenge, the Bombay High Court cited procedural lapses in quashing the request by Indian investigators to collect evidence against Adani. Shortly after this ruling, the investigating agency appealed to the Supreme Court, which suspended the Mumbai court's decision "until further orders."
Singapore court's stance on document release
Last month, the Singapore court denied requests from Reuters to examine related case documents, stating that the files were sealed. However, in late 2020, following Adani's request, the court declared that the documents should not be released for now because India's top court had not made a final decision. The office of Singapore Attorney-General Lucien Wong stated that the Singapore court had not commented on the merits of Adani's appeals and the case was still pending.
Next hearing scheduled for February 6
DRI's effort to revive the coal investigation coincides with heightened regulatory scrutiny of Adani after Hindenburg Research's January accusations of improper use of tax havens and stock manipulation against the tycoon and his conglomerate. The Supreme Court's next hearing is set for February 6, which could determine the fate of the agency's request to collect evidence from Singapore.