The Delhi High Court on Tuesday asked authorities to "carefully and expeditiously" look into allegations of 'over invoicing' by various power generation companies in India. So that the factual situation can be ascertained and appropriate action can be taken against the guilty companies. ‘Over-invoicing’ involves inflating the price of goods or services.

So that it appears that companies are spending more on imports than they actually can. Over-invoicing is used for many purposes, including avoiding taxes or customs duties.

The Delhi High Court passed this order while disposing of two petitions filed in 2017 by the NGO Center for Public Interest Litigation (CPIL) and former bureaucrat and social activist Harsh Mander.

In its 54-page judgment, a bench of Justices Suresh Kumar Kait and Neena Bansal Krishna said that the court, keeping in mind the peculiar facts of these cases, directs the respondents to carefully and expeditiously look into the allegations of the petitioners and find out the actual factual position.

The imposition directs the company to take appropriate action as per law against the guilty companies, if any.

CPIL demanded a Special Investigation Team (SIT) probe into the Directorate of Revenue Intelligence (DRI) report on the involvement of several private power companies in 'over invoicing'.

The companies involved in different types of business use over-invoicing to further their interests. Through this, the value of goods or services is shown by increasing it. So that it appears that companies are spending more on imports than they actually can. The purpose of using overinvoicing by companies is to avoid customs duty and earn other profits.