Global bodies call for expedited justice in Adani Group’s alleged overvaluation of coal imports, citing new evidence from OCCRP-backed report.
New Delhi, 25 May 2024 – In a significant development, 21 international organizations have written to Chief Justice of India, DY Chandrachud, urging the Supreme Court to expedite the resolution of a pending case involving the Adani Group. The case, filed by the Directorate of Revenue Intelligence (DRI), investigates allegations of overvaluation of Indonesian coal imports by Adani Group firms.
The call for swift judicial action follows a recent report by the London-based Financial Times. The report, based on documents from the Organized Crime and Corruption Reporting Project (OCCRP), which is backed by George Soros, alleges that the Adani Group engaged in fraudulent activities by selling low-grade coal as high-value fuel in 2013. This purported fraud has reignited concerns about the integrity of coal transactions and the broader implications for environmental and economic policies.
Details of the Allegations
The Financial Times report claims that the Adani Group sold low-quality coal as a more expensive, cleaner fuel to Tamil Nadu’s Tangedco. This allegation is supported by documents reviewed by OCCRP, suggesting a deliberate misrepresentation of the coal’s quality to inflate its market value.
The Call for Justice
The 21 international organizations, which include prominent environmental and justice groups such as the Australian Centre for International Justice, Friends of the Earth Australia, and Transparency International Australia, emphasize their opposition to the continued use of fossil fuels. They argue that the new evidence presented by the Financial Times underscores the need for a thorough and expedited investigation into the Adani Group’s practices.
In their letter to Chief Justice Chandrachud, the organizations assert that the case’s swift resolution is crucial not only for holding accountable those involved but also for setting a precedent against corporate fraud in the fossil fuel industry.
Adani Group’s Response
The Adani Group has staunchly denied the allegations. A spokesperson for the company stated that the coal’s quality was independently tested at multiple points, including during loading and discharge, by customs authorities and Tangedco officials. “With the supplied coal having passed such an elaborate quality check process by multiple agencies at multiple points, clearly the allegation of supply of low-quality coal is not only baseless and unfair but completely absurd,” the spokesperson said.
The group also highlighted that the payment for coal was contingent upon the quality ascertained through these rigorous tests. Furthermore, the company noted discrepancies in the report’s timeline, asserting that the vessel mentioned in the allegations had not been used for shipping coal from Indonesia before February 2014.
Ongoing Investigation
The DRI has maintained its stance on continuing investigations into the alleged overvaluation of coal imports by the Adani Group. Initiated in March 2016, the probe focuses on transactions from 2011 to 2015, scrutinizing the financial and operational conduct of the involved entities.
Political Repercussions
The controversy has also taken on a political dimension, with opposition leaders, including Congress leader Rahul Gandhi, calling for a joint parliamentary committee probe into the matter. The allegations and the subsequent call for an investigation have fueled debates about corporate governance and regulatory oversight in India.
Conclusion
As the Supreme Court considers the appeal from these international organizations, the case against the Adani Group remains a focal point of legal, environmental, and political scrutiny. The resolution of this case could have far-reaching implications for corporate accountability and the fight against climate change.
The global community now watches closely, awaiting the Supreme Court’s decision on how it will proceed with this high-stakes case.