Ahmedabad-based Gautam Adani-led Adani Group is exploring legal options after being slapped with a Rs 5,500-crore tax notice by the Mumbai wing of the Directorate of Revenue Intelligence for allegedly overvaluing imported equipment.
“We have received the show-cause notice from the DRI. We are evaluating the same and would decide further course of action based on legal advice,” a company spokesperson replied in an email query sent by FE.
The notice was sent to Adani Power Maharashtra Ltd and Adani Power Rajasthan Ltd for alleged “overvaluation” by Rs 2,000 crore of the capital equipment for power projects imported from a supplier based in the United Arab Emirates. The companies have been given 30 days to reply.
This comes days after the BJP-led National Democratic Alliance's phenomenal victory in the Lok Sabha elections. During the campaigning, Congress vice-president Rahul Gandhi had repeatedly attacked the Adani Group for alleged favouritism by Narendra Modi. However, Adani Group has repeatedly rubbished these allegations.
The shares of Adani Group's flagship company Adani Enterprises Limited on Monday surged by 5.6%, reaching a high of Rs 560 per share before closing 1.95% higher at R541.25 after the company reported a consolidated profit of Rs 2,221 crore for the year ended March 31, 2014.