Court Orders CBI Enquiry Into Alleged Over-Invoicing by Adani, Essar Groups

New Delhi: The Delhi High Court has ordered the Central Bureau of Investigation (CBI) and Directorate of Revenue Intelligence (DRI) to investigate allegations of over-invoicing of coal imports and equipment by various companies, including the Adani Group and Essar Group. The court has directed the agencies to take prompt action under the law.

Responding to two Public Interest Litigations (PIL) filed by the Centre for Public Interest Litigation and activist Harsh Mander, the High Court has mandated a thorough examination of the allegations. The applicants sought a Special Investigation Team (SIT) probe into reports from the Directorate of Revenue Intelligence regarding over-invoicing by private power-generating companies.

Last month, the DRI sought Supreme Court permission to resume a probe into the Adani Group for alleged overvaluation of coal imports and requested approval to collect evidence from Singapore. The DRI, since 2016, has been attempting to obtain transaction documents related to Adani’s dealings from Singapore authorities. The agency suspects that Adani’s coal shipments from Indonesian suppliers were initially invoiced at higher prices to its Singapore unit, Adani Global Pte, and then to its Indian arms.

This move is part of a broader investigation by the revenue agency into 40 companies that commenced in 2014. The High Court’s directive underscores the need for a swift and comprehensive inquiry into the matter, emphasizing potential legal actions against companies found in violation.