The adjudicating authority of Directorate of Revenue Intelligence (DRI) K V S Singh has ordered to strike down all proceedings  of the the agency  against the Adani Group firms. As per Indian Express, these firms were accused of allegedly inflating  declared value of goods which were imported under power and infrastructure headsand attracts zero or less than 5 percent duty to nearly Rs 3974.12 crore.

“I do not agree with the case of the department that the noticees APML (Adani Power Maharashtra Ltd) and APRL (Adani Power Rajasthan Ltd ) along with their related entity i.e. EIF (Electrogen Infra Holdings Pvt Ltd) had connived to over-value the value of the impugned goods,” said Singh in his order that was passed on August 22, the paper said. He is the Additional Director General, Adjudication, with the DRI.

According to the report, the Chief Commissioners of Customs – Ahmedabad and Mumbai, will review the order passed by Singh. It will have to be passed in 30 days and the agency will not have any role to play in the review process. DRI, can however challenge the decision in Central Board of Excise and Customs before Member (Legal).

In a report in 2014, Indian Express had said that DRI had issued a show-cause notice to a number of Adani Group firms alleging over valuation of imported power equipment and “siphoning off of money abroad”.

The notice, as per the paper had stated that even as “the goods (power generation and transmission equipment) are being shipped directly to India by the original equipment manufacturers (based in China and South Korea), the documents are routed through an intermediary entity (M/S Electrogen Infra FZE, UAE) created in Dubai . The actual invoice value of the Original Equipment Manufacturer (OEM) is remitted to the supplier while the inflated extra amount is sent to accounts held in subsidiary/holding company established by Adani Group in Mauritius.”

It added that Mauritius entity Electrogen Infra Holdings Pvt Ltd, is allegedly “controlled and managed by Vinod Shantilal Shah, alias Vinod Shantilal Adani”. He is the eldest of the Adani brothers, Indian Express said.