The Directorate of Revenue Intelligence (DRI) has slapped a Rs 5,500-crore show-cause notice on Adani group for alleged over-valuation of capital equipment imports.
The show-cause notice was issued by the Mumbai office of DRI late last week, and agency sources said the notices were issued against three companies of the Ahmedabad-based Adani Group for alleged over-valuation by Rs 2,000 crore of capital equipments for its power projects. "We have issued show-cause notices to three Adani group power companies and are expecting their replies soon," a DRI source.
With over 10,000 MW of generation, Adani Power is the largest private power producer in the country and also the largest ports operator in the country with its Kandla Port overtaking the state-run JNPT last fiscal. The DRI notices were issued to the Gautam Adani-promoted three group companies--Adani Power Maharashtra, Adani Power Rajasthan, Maharashtra Eastern Grid Power Transmission Company--and a contractor to the last entity, said the agency sources. A spokesman of Adani group confirmed receiving the notice from the DRI and said that they"will decide further course of action based on legal advice."
According to DRI officials, the notice followed the investigation by the agency, wherein they were probing over-valuation of import of machinery and equipment by various Adani Group firms from a UAE-based company.
It can be recalled that last November, the Central Board of Excise & Customs had reminded the Directorate General of Foreign Trade to cancel import duty benefits issued to the Adani Group in 2004.
Adani Group on May 16 announced the purchase of the Dhamra Port in Odisha from Tata Steel, L&T for Rs 5,500 crore.
On Saturday, the group flagship Adani Enterprises had reported a sixfold rise in March quarter net income at Rs 2,847.82 crore, boosted by gains from compensatory tariff for its arm Adani Power while its income increased to Rs 16,171 crore as against Rs 11,512.9 crore in the corresponding period the previous fiscal.
