Delhi HC orders CBI & DRI to investigate allegations of over-invoicing by companies including Adani, Essar Groups

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• Dec 19, 2023 | Dhupali Das

The Delhi High Court has issued a significant directive, instructing the Central Bureau of Investigation and the Directorate of Revenue Intelligence to...

Digital Desk: The Delhi High Court has issued a significant directive, instructing the Central Bureau of Investigation (CBI) and the Directorate of Revenue Intelligence (DRI) to investigate allegations of over-invoicing related to coal imports and equipment by multiple companies, notably including the Adani Group and Essar Group. The court's order mandates a thorough investigation in line with legal protocols.

In response to two Public Interest Litigations (PIL) filed by the Centre for Public Interest Litigation and activist Harsh Mander, the High Court bench, led by Advocate Prashant Bhushan, directed the central agencies to expedite and meticulously examine the accusations to unveil the factual scenario. The objective is to take suitable actions against any culpable entities as per the law.

The PILs were prompted by reports from the Directorate of Revenue Intelligence (DRI), specifically focusing on alleged over-invoicing by private power-generating companies, seeking an SIT (Special Investigation Team) probe into these claims.

Recent developments saw the DRI approaching the Supreme Court, seeking authorization to resume the investigation into the Adani Group regarding the purported overvaluation of coal imports. Additionally, the DRI has requested approval to gather evidence from Singapore.

Suspicions arose concerning the Adani Group's coal shipments from Indonesian suppliers, suspected of being initially billed at inflated prices to its Singapore unit, Adani Global Pte, before reaching its Indian arms. This investigative thread has been ongoing since 2016 as part of a broader scrutiny of 40 companies initiated back in 2014.

The High Court's firm directive underscores the gravity of the allegations, compelling a comprehensive inquiry into potential fiscal irregularities that could impact various sectors significantly.