The Delhi High Court has issued instructions to the Directorate of Revenue Intelligence (DRI) and the Central Bureau of Investigation (CBI) to conduct a thorough and prompt investigation into allegations of over-invoicing by power companies linked to the Adani Group, Essar Group, and others.

A division bench comprising Justices Suresh Kumar Kait and Neena Bansal Krishna delivered the order in response to public interest litigation (PIL) petitions filed by activist Harsh Mander and NGOs Center for Public Interest Litigation and Common Cause.

Given the unique circumstances of these cases, the court deemed it appropriate to direct the authorities to carefully and swiftly examine the petitioners' allegations, uncover the actual facts, and take appropriate actions against any companies found to be in violation of the law.

The court, while disposing of the PILs filed in 2017, emphasized the need for the authorities to delve into the allegations and establish the factual position, stressing that necessary actions should be taken against any companies found at fault.

The PILs had initially sought the formation of a Special Investigation Team (SIT) under a retired Supreme Court judge to investigate the allegations, relying on show cause notices from the DRI dated May 15, 2014, and March 31, 2016. These notices indicated that entities within the Adani and Essar groups were allegedly inflating the value of imported goods to divert funds abroad from publicly listed companies with low or zero duty rates.

During the proceedings, the petitioners cited reports from Hindenburg Research (January 24, 2023) and OCCRP to support their claim that the Adani Group's promoters were involved in manipulating the stock prices of their listed companies.

The DRI informed the court that the investigation was complex and time-consuming, involving multiple cases and stages across various countries. The CBI reported registering two cases with ongoing investigations.

While acknowledging transparent processes in determining tariff rates through bidding under Central Government guidelines, the court directed the authorities to swiftly address the allegations due to the petitioners' concerns about inaction and various pending proceedings in other forums.

The court's directions mark the conclusion of the matter, with the PILs being disposed of.

Case: Centre for Public Interest Litigation and Anr. v. Union of India and Ors.

W.P.(C) 8136/2017.