The Delhi High
Court has kept in abeyance its order asking the CBI and the Directorate of
Revenue Intelligence (DRI) to meticulously and expeditiously look into
allegations of over-invoicing of imports by the Adani Group.
A bench of
Justices Suresh Kumar Kait and Neena Bansal Krishna, while noting in its
January 5 order that a petition filed by the Commissioner of Customs (Import)
in a matter involving Adani Power Maharashtra Limited is pending before the
Supreme Court, said its December 19, 2023 directions to the CBI and DRI in
respect of Adani Group firms be kept in abeyance until the outcome of the
matter before the top court.
On December 19,
2023, the high court had directed the two federal probe agencies to
meticulously and expeditiously look into the allegations of over-invoicing of
imports by various power generating companies in India, including the Adani
Group and the Essar Group, to ascertain the factual position and take
appropriate action against the erring firms.
Over-invoicing
involves inflating the value of goods or services to make it appear that the
companies are spending more on imports than they actually are. Over-invoicing
is used for several purposes, including to evade taxes or customs duties.
Recently, Adani
Power Limited filed an application before the high court placing on record a
copy of the order passed by the Supreme Court by which an appeal filed by the
Commissioner of Customs (Import) against Adani Power Maharashtra Limited was
dismissed on March 27, 2023.
The counsel for
the Adani firm informed the court that the customs department has filed a
petition seeking review of the top court's order which is pending adjudication.
The high court,
while disposing of the application, said Relevantly, this court vide judgment
dated December 19, 2023, in para 52 had passed a direction to the respondents
to look into the allegations raised by the petitioner herein against the
respondents, one of which is the present applicant- M/s Adani Power Limited.
It said, In view
of the fact that review petition preferred by the department is sub-judice
before the Hon'ble Supreme Court; the directions passed by this court in para
52 of judgment dated December 19, 2023 in respect of M/s Adani Power
Maharashtra Limited and M/s Adani Power Rajasthan Limited (now M/s Adani Power
Limited) are kept in abeyance awaiting outcome of the said review petitions.
The high court's
December order was passed while disposing of two petitions filed in 2017 by NGO
Centre for Public Interest Litigation (CPIL) and former bureaucrat and social
activist Harsh Mander.
The petitioners
had referred to show cause notices issued by the DRI dated May 15, 2014 and
March 31, 2016 that spoke of various entities of the two corporate giants
indulging in gross over-valuation of imported goods (zero or low duty rated) to
siphon off money abroad from public listed companies.