The Directorate of Revenue Intelligence authority has struck down all proceedings launched by the DRI against the Adani Group firms, accused of inflating the total declared value of goods imported under power and infrastructure heads to the extent of Rs 3974.12 crore.
In his order, the adjudicating authority of DRI, KVS Singh said, “I do not agree with the case of the department that the noticees APML (Adani Power Maharashtra Ltd) and APRL (Adani Power Rajasthan Ltd ) along with their related entity i.e. EIF (Electrogen Infra Holdings Pvt Ltd) had connived to over-value the value of the impugned goods.”
In its latest order, as reported by Indian Express, the adjucating authority has essentially rejected the DRI’s contention that Adani Group firms had transacted with EIF, a related party, in order to inflate the cost of the capital goods from Original Equipment Manufacturer to siphon off money abroad.
Singh said in his order, “….even though I find that EIF and APRL to be related entities through Shri Vinod Shantilal Adani @ VinodShantilal Shah I have come to the conclusion that the said relation has not affected the price and that the same was at arms length and have accepted the transaction value. Thus I find that the allegation that the impugned goods were over-valued does not hold water.”
Singh’s order was based on submissions made by Adani Group firms citing a 30 December, 2016 order of the Income Tax department, Ahmedabad, which reportedly did not add to the total income of APRL and APML in the assessment of financial year 2012-13 and 2013-14, the year when the transactions with EIF took place.
Singh, according to the Indian Express report, did not seek any further comments from the DRI on this issue. The Adani Group firms denied all allegations made by DRI in its show-cause notice before the adjudicating authority.
Singh’s order is believed to be a big setback to the DRI investigation against the Adani Group and other top Indian firms that, according to the agency, have collectively over-valued such power equipment imports using an identical modus operandi to the extent of Rs 10,000 crore.
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