Adani debacle intensifies as DRI moves SC on order quashing case against 2 firms: Report
2 min read . Updated: 05 Feb 2023, 04:49 PM IST
Premium- According to reports, the DRI has alleged that Adani Group inflated bills for two companies. However, the CESTAT had denied the allegations
- The companies in question are Adani Power Maharashtra (APML), and Adani Power Rajasthan (APRL) which were granted relief by the Mumbai bench of the tribunal.
The Adani Group debacle also involving the once richest man in Asia has now put government agencies in conflict, as several have taken the battlefield to fight each other. Government agencies such as Directorate of Revenue Intelligence (DRI) in their latest move has challenged the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the Supreme Court of India, according to Economic Times.
According to reports, the DRI has alleged that Adani Group inflated bills for two companies. However, the CESTAT had denied the allegations. The companies in question are Adani Power Maharashtra (APML), and Adani Power Rajasthan (APRL) which were granted relief by the Mumbai bench of the tribunal.
Along with Adani Group companies, three individuals are also named in the appeal. Gautam Adani's elder brother Vinod Shantilal Adani's name included. It was filed on 11 November last year.
The Hindenburg report had mentioned the DRI report alleging over-valuation by the Adani Group of companies. The report has also caused a huge fall in Adani Group's shares. The companies' market cap has been reduced to ₹10 lakh crore. It was ₹19.2 lakh crore on 24 January.
Background
The DRI had in 2014 issued a show cause notice to APML and APRL alleging over-valuation.
In August 2017, the Adjudicating authority of DRI, set aside all the allegations and dropped the SCN. It has been held by the Adjudicating Authority that all the imports were genuine being undertaken at arm’s length and concluded that the value declared is correct and the value is not required to be re-determined.
On appeal by Customs Department, CESTAT, Mumbai in July 2022 dismissed the appeal filed by Customs Department and upheld the Order of Adjudicating Authority. The matter has not yet been listed for hearing, a spokesperson for Adani group told The Economic Times.
According to Navbharat Times, DRI had in their 2014 show cause notice alleged that Dubai based companies EIF, APML, APRL have a nexus. It was said in the show cause notice that these companies have manipulated foreign exchange.
According to the Navbharat Times report, the over-valuation details were- the actual value of the imported goods was ₹3187.61 crore, while the bill was made for ₹7161.73 crore. In this way ₹3974.12 crore was siphoned off through EIF. Although Adani Group says that Vinod is not the promoter of Adani Group.
The misappropriation amounted to a whopping ₹3974.12 crore.
