A plea by two non-profit organisations (NGOs) in an Indian high court has triggered a new probe into over-invoicing by the country’s power producers.
Companies overstated the cost of imported equipment and coal and should be properly investigated according to the plea lodged by Common Cause and the Centre for Public Interest Litigation.
Delhi High Court has now issued notice to the Directorate of Revenue Intelligence to investigate allegations in the plea of over-invoicing of equipment and fuel imported for power plants by electricity generating companies.
In their petition, the NGOs allege that several firms, including some within the Adani and Essar groups of companies, of fabricating costs of imports. The power producers were subsequently able to overcharge customers because electricity tariffs are based on a percentage over the cost of equipment and fuel.
Allegations of over-invoicing in India’s power sector are not new. The country’s Central Bureau of Investigation (CBI) had been investigating firms in the power sector but closed the case for reasons that remain unclear.
The NGO’s plea also calls on the authorities to investigate why the CBI closed the case. “The said case is a clear criminal offence and needs a thorough investigation,” the plea states.
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