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Overvaluation of Indonesian coal, power equipment: Delhi HC to hear Prashant Bhusan’s plea today

DRI is currently investigating over a dozen firms including a few firms of the Adani Group, Essar Group and Reliance ADAG Group among others for alleged over valuation of Indonesian coal imports and power equipment imports between 2011 and 2015.

Written by Khushboo Narayan | Mumbai | Published: September 13, 2017 12:01 pm
coal, over valuation of coal prices, indonesia coal, Adani Group, Essar Group, Reliance ADAG Group, power price hike The Delhi High Court is likely to hear the PIL filed by Prashant Bhushan today.

New Delhi-based senior advocate Prashant Bhushan has filed a Public Interest Litigation (PIL) in the Delhi High Court on the alleged over-valuation of Indonesian coal and power equipment imports by some of the top firms in the country to the tune of Rs 20,000 crore.

The Directorate of Revenue Intelligence (DRI) is currently investigating over a dozen firms including a few firms of the Adani Group, Essar Group and Reliance ADAG Group among others for alleged over valuation of Indonesian coal imports and power equipment imports between 2011 and 2015.

The high court is likely to hear the PIL filed by Bhushan today.

According to the DRI, overvaluation of power equipment and coal has the effect of artificially raising the tariff values fixed by the Central Electricity Regulatory Commission (CERC) or the respective state regulatory commissions. This ultimately affects the consumers as they end up paying a higher cost for consumption of electricity.

The DRI has alleged that several coal traders are directly importing Indonesian coal to Indian ports but the invoices for such imports are “routed through one or more related/associated intermediary firms based abroad” after artificially inflating its value. To justify the inflated price of the coal, “manipulated test reports” of the quality of coal is submitted to public sector units and Indian Customs. This coal is then supplied to public sector coal based thermal power generation companies in India at the “artificially inflated import price and the inflated price is remitted from India to the intermediary firms abroad which remit only the actual price to the suppliers of the Indonesian coal and the balance is siphoned off elsewhere”.

The DRI is also investigating certain power firms for using the same modus operandi to over-value imported power plant equipment. The agency has already issued show-cause notices to two Adani Group firms and two Essar Group firms for over-invoicing power plant equipment to the tune of Rs 10,050 crore.

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  1. John Alexander
    Sep 13, 2017 at 2:24 pm
    Modiji conveniently will pass on the blame to the low level officials will even produce proof that they are congress agents. He is untrustworthy and a typical parochial PM. Never before in Indian PM was partisan as Modi. The paid imbecile media will run panel discussion and even bring fake valuation certificates from Gujarati CA s that the coal prices were just. Their majesty of Supreme court will declare Prashant bhusan pe ion as dismissed. Fat power bills,savage mortgages,skyrocketing education expenses,unemployment . Urban middle class you are doomed. I pray to the gods to put an end to this fascist gujatati mafia.
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    1. I
      Indian
      Sep 13, 2017 at 8:32 pm
      lol. Do you read it? It says coal imports from 2011 to 2015. Where did Modi come in 2011? it has become a habit of people to blame Modi for anything. And by the way, the govt is investigating it. Directorate of Revenue Intelligence is investigating it. Using your own logic it means Modi is investigating it. lol
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    2. O
      Observer
      Sep 13, 2017 at 2:15 pm
      Has any CAG during the last twenty years ever done serious audit of quite possible over-valuation/overinvoicings of imported plant equipment, machinery, heavy duty cranes, pumpsets, mobile/rotating equipments, oil rigs, aircrafts, blast furnaces, rolling mills , their spare parts costs etc. Has any govt. so far allowed posting of meritorious engineers of various disciplines, chartered/cost accountants etc in the depts of CAG,major vigilance cells, audit depts etc? Let some examples be made available.
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      1. Shamsul Islam
        Sep 13, 2017 at 1:01 pm
        Kitchen Cabinet of PM Modi Zindabad.
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        1. I
          Indian
          Sep 13, 2017 at 8:34 pm
          Do you read it or just shouted Modi? :) Its deals from 2011 to 2015. And Modi is investigating it. Kudos to Modi. Say it loud Shamsu Islam....Modi Zindabad...
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        2. D
          drharun
          Sep 13, 2017 at 12:55 pm
          Prashant Bhusan is just skating on thin Ice,its just not worth the trouble.It was always the case that jacking up Invoice cost of equipment and Imports has been the modus Ope i to loot India by selfish corporates for years.If u look into Capital costs of all such companies set up you will find billions of dollars having been looted.He will get nowhere in this case as well.Though the money trail can easily be established with out a sweat.The agencies like DRI or CBI will never do it for reasons obvious naming a Adani or Ambani in the scam is only going bring scorn on the pe ioner. Is anyone asking what has been done to the 45000 cr loan default by Anil Ambani since Jan 2017.His moratarium on loan ends in September,what will be done on a default which is likely.We dont hear anyone discussing it.
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