Indian specialists are actively pursuing a restart of the investigation into the Adani Group over alleged overvaluation of coal imports. They are seeking High Court approval to collect evidence from Singapore, as reported by Reuters.
The Directorate of Income Insight is diligently attempting to obtain trade reports from Singaporean authorities related to Adani's transactions dating back to 2016. The focus is on the belief that a substantial portion of the group's coal imports from Indonesian suppliers was initially billed to its Singaporean subsidiary, Adani Global Pte, at an inflated price on paper, subsequently benefitting its Indian arms.
Court records reveal that legal challenges have been mounted by Adani Ventures and its subsidiaries, led by billionaire Gautam Adani, to prevent the release of these reports, both in Singapore and India. Adani vehemently denies any wrongdoing, insisting that Indian authorities had already assessed its coal shipments before their release from ports.
In a recently revealed October 9 legal filing, the income intelligence agency has urged India's High Court to overturn a previous lower court order that allowed Adani to obstruct authorities from gathering evidence in Singapore. Indian officials refute Adani's claims of non-compliance with "due process," asserting that their actions were sanctioned by a mutual legal assistance agreement to request information from the Southeast Asian city-state.
Adani Group, in a statement to Reuters, maintains full cooperation with authorities, providing requested details and documents over an extended period. They assert that no deficiency or objection was communicated by investigators thereafter.
This renewed investigation aligns with heightened regulatory scrutiny of Adani following allegations by Hindenburg Research in January regarding improper use of tax havens and stock manipulation by the conglomerate.
The income agency initiated its examination of Adani's imports in 2014 as part of a broader investigation into 40 companies, according to Reuters. Investigators claim that the companies importing Indonesian coal were inflating deliveries by presenting bills of shipments routed through brokers in Singapore and other locations.
An anonymous source with direct knowledge of the case informed Reuters that the evidence sought from Singapore authorities, including trade records from 20 of Adani's banks there, could help trace a financial trail in the case.
In 2019, the Mumbai High Court cited procedural omissions to deny the Indian authorities' request to collect evidence against Adani. However, the Singapore court in 2020 decided not to release the records, pending an official decision by India's top court.
