No Fresh Query from DRI or ED on Adani Case

Union Power Secretary Ajay Kumar Bhalla on 2nd Aug told standing committee on Energy that DRI or ED have not sought any details regarding alleged financial fraud by Adani Group in a Maharashtra based power project. The Guardian in a detailed report published on August 15 claimed that the Adani Enterprise Ltd. and its subsidiaries siphoned off the money from a Maharashtra based power project through over-invoicing. The power secretary spoke at length on the recent power sector’s contribution to NPA. The Congress too demanded a SC monitored probe in the case. It also alleged that the NDA govt is going slow on the case. As Congress general secretary Ajay Maken the Congress led UPA govt had initiated an inquiry on 5 Feb’13 into the practice of over-invoicing on import of machinery by subsidiary of Adani enterprises Ltd. On 15 May’14, a day before the results of 2014 Lok Sabha polls, the DRI issued a 97 page show cause notice. The Guardian story quoting from these documents writes on a complex money trail through South Korea, Dubai and eventually to an offshore company in Mauritius. The Mauritius firm is controlled by Vinod Shantilal Adani, the older brother of billionaire Adani Group Chief Executive Gautam Adani. The total money according to the Guardian story could be to tune of $235 million dollars parked in tax haven. This was done as per reports by utilizing network of offshore CoS to purchase electrical equipment and then sell it to its Indian counterpart at over 86% above the original value.