For over a decade now, the Directorate of Revenue Intelligence (DRI), an investigative wing in the Department of Revenue of the Union Ministry of Finance, has been investigating companies in the Adani group for their unusual trading activities in cut-and-polished diamonds and studded gold jewellery. Four show-cause notices were issued by the DRI claiming that the group's firms had availed undue benefits to the tune of almost ₹1,000 crore. The case traversed through tribunals and courts till a bench of the Supreme Court recently dismissed the review petition of the government against the Adani
Exclusives related to Gautam Adani
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A tale of two orders
Two cases adjudicated by the same officer in the Directorate of Revenue Intelligence (DRI), eight months apart, may have carried contradictory orders. This website carries an analysis by Varun Santhosh of the order of the Adjudicating Authority in the DRI case of alleged over-invoicing in the import of power equipment by subsidiary companies of Adani Power Limited to the extent of ₹3,974 crore. K V S Singh, Additional Director General, Adjudication, DRI, who had issued an order in the Adani Power case on 22 August 2017, had delivered another order on 23 December 2016, in a case of over
A flawed order
On 22 August 2017, the adjudicating authority in the Directorate of Revenue Intelligence (DRI) absolved two Adani group companies, Adani Power Maharashtra Limited (APML) and Adani Power Rajasthan Limited (APRL), of all charges laid out in a show cause notice issued by the DRI in May 2017.
It had been alleged in this Show Cause Notice that the companies overvalued equipment for power generation to the tune of ₹3,974 crore by conniving with an intermediary, Electrogen Infra FZE (EIF), United Arab Emirates (UAE). The DRI had issued another Show Cause Notice to the Adani group for ₹1,526 crore
Should the Adani group be given a clean chit?
On 22 August 2017, the Additional Director General, Adjudication, Directorate of Revenue Intelligence, Ministry of Finance, Government of India, K V S Singh ruled against the Directorate of Revenue Intelligence (DRI) in favour of the Adani group company, Adani Power Maharashtra Limited, and others, dismissing the show-cause notice served on them on 15 May 2014 alleging over-invoicing of power plant equipment and money laundering with the assistance of related entities abroad to the tune of around ₹4,000 crore.
Interestingly, two show-cause notices were issued by the DRI against the Adani