Posted inCorruption / India

Indian official reportedly dismisses fraud allegations against Adani Group

Protesters rally outside Adani’s headquarters in Brisbane over its proposed Carmichael coal mine. Photograph: Darren England/AAP
An Indian customs official has reportedly dismissed allegations that the Adani Group illegally siphoned nearly 15bn rupees (£176m) into overseas tax havens.

It is the third set of siphoning allegations against the Adani Group and key figures in the Adani family to be dismissed by the official, KVS Singh, in recent months.

The Indian mining conglomerate, which is preparing to build one of the world’s largest coal mines in Australia, had been accused of using a front company in Dubai to inflate the price of equipment it purchased for electricity projects between 2009 and 2013. Dubai company was owned and controlled by Vinod Adani, the elder brother of Gautam Adani, who chairs the Adani Group.

India’s Directorate of Revenue Intelligence (DRI) had alleged the Dubai company was sourcing equipment from South Korea and China, which it would sell on to Adani Group subsidiaries for up to 13 times the price in some instances.

On Saturday the Indian Express reported that Singh, the adjudicating authority for the DRI, had decided to dismiss the allegations.

Evidence collected by the DRI showed at least 57 cases of equipment being shipped directly to Adani Group subsidiaries in India while the invoices were routed through the Dubai company, which raised their price by an average of 400%.

— source theguardian.com 2017-10-31

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