Indian court asks CBI why over-invoicing investigation has been shelved

The Delhi High Court has asked India’s Central Bureau of Investigation (CBI) to explain why it has closed its enquiries into alleged trade-based money laundering (TBML) in the Adani Group’s power production operations.

The CBI has allegedly improperly closed a preliminary enquiry against the Indian multinational conglomerate in connection with artificial over-invoicing of imports of fuel and power generating equipment.

The court has now directed the CBI to file an affidavit explaining its position on the allegation that it had shelved a Preliminary Enquiry (PE) it had been asked to conduct based on information provided to it by the Directorate of Revenue Intelligence.

Enquiry shelved

The court was responding to an alert it received from the Centre for Public Interest Litigation and Common Cause that the investigation had been shelved.

The centre maintains there is a widespread over-invoicing scam amongst India’s power producers.

Higher tariffs

It says the companies are indirectly involved through foreign intermediaries in over-invoicing fuel and capital equipment imports by as much as 400 per cent, which adversely affects consumers, stakeholders and tax authorities.

The power companies can set higher electricity tariffs if they can show evidence of higher capital equipment or fuel prices.

The CBI has been granted two weeks to file its affidavit.

Categories: Trade Based Financial crimes News

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