Adani row pits two government agencies against each other in Supreme Court

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The Adani saga that rattled the Indian stock market over allegations of stock manipulation has now pitted two government agencies against each other. According to Economic Times newspaper, the Directorate of Revenue Intelligence (DRI) has challenged the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the Supreme Court regarding over-invoicing case against Adani Group’s two companies—Adani Power Maharashtra (APML), and Adani Power Rajasthan (APRL).

The Directorate of Revenue Intelligence has challenged CESTAT order, which had quashed the over-invoicing case alleged by the DRI against the three of Adani’s subsidiaries.

Between July and August, the Mumbai bench of the CESTAT granted relief to Adani’s subsidiaries.

According to the court filings, the DRI filed a civil appeal in the apex court against the CESTAT order on APML and APRL in November.

The Hindenburg report had mentioned the DRI report alleging over-valuation by the Adani Group of companies. The report has also caused Adani Group’s shares to tank. The companies’ market cap has been reduced to ₹10 lakh crore. It was ₹19.2 lakh crore on January 24.

Meanwhile, three investment funds linked to the Adani Group have agreed to buy shares as investors in Adani Enterprises follow-on stock offering, as the 100-page Hindenburg report continues to drag the Adani Group down.

According to Forbes, two Mauritius-based funds—Ayushmat Ltd and Elm Park Fund—and India-based Aviator Global Investment Fund have together committed to buy 9.24 per cent of all shares available to anchor investors.

Anchor investors are institutional investors who are allotted shares a day before the public offering.

That 9.24 percentage shares represent an investment of just $66 million, which shows that Adani is getting help from affiliated parties.

The Adani Group’s seven publicly listed companies have lost over $100 billion of market value in 10 days since Hindenburg accused it of a decades-long scheme of fraudulent self enrichment.

(With inputs from agencies)

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