Adani Enterprises Ltd involved in Criminal Conspiracy and Corruption filed by CBI. The Central Bureau of Investigation has filed a case of corruption and criminal conspiracy against Adani Enterprises Ltd and top officials of the National Cooperative Consumer Federation (NCCF) for allegedly manipulating a tender in 2010 to give the company a contract to supply imported coal to a state-run power firm.
Understanding Adani Enterprises Ltd Case
The agency claimed it has been investigation officials of Adani Enterprises and NCCF since 2017 on a complaint from the ministry of consumer affairs as part of a preliminary enquiry (PE). An FIR registered. An FIR is typically registered only if the enquiry unearths possible irregularities.
The FIR names Adani Enterprises Ltd, NCCF’s executives at the time — former Chairman Virender Singh, former MD G P Gupta, and senior advisor S C Singhal — and unknown public servants as accused.
Last week, the Supreme Court paved the way for the Directorate of Revenue Intelligence, which looks at irregularities in imports and exports (aimed at evading tax, or benefiting from incentives), to restart its investigation against the Adani group in a case concerning alleged overvaluation of coal imports from Indonesia. The apex court stayed the October 17, 2019 judgment of the Bombay high court which granted relief to Adani by quashing the letters rogatory (LRs) sent to various countries, including Singapore seeking details of the group’s coal imports from Indonesia.
Investigating Adani Enterprises Ltd Case
“There is a news item about lodging of an FIR by the CBI against the National Cooperative Consumer Federation. Adani Enterprises Ltd related to supply of imported coal. The subject matter is an old one. Adani Enterprises Ltd has complied with the process, formalities and relevant laws … The company has not done anything wrong in supply of coal. It’s a preliminary investigation report only. The company shall respond to the same. Hence, it shall also put forth the factual position to the authority,” Adani spokesperson said in a statement.
According to the FIR, a copy of which has been reviewed by HT, Andhra Pradesh Power Generation Corporation (APGENCO) floated a limited tender enquiry for the supply of six lakh Metric Tonnes of imported coal from sea ports to Narla Tata Rao Thermal Power Plant in Vijaywada and Rayalaseema Thermal Power Plant (RTPP) in Kadapa on June 29, 2010. This was forwarded to seven state-owned companies: PEC Limited New Delhi, STC Limited New Dehi, MSTC Limited Kolkata, NCCF Hyderabad, MMTC Hyderabad, Coal India Ltd Kolkata and SCCL Hyderabad.
CBI alleges that senior NCCF officials. It committed irregularities by way of manipulation in the selection of the bidders. Therefore, it gave undue favour to Adani Enterprises Ltd.
The NCCF head office initially asked Maharaja Brothers Coal Limited (MBCL) to take up the job; the company agreed to give NCCF a margin of 2.25%. It later cancelled this order and floated an open tender. Therefore, Adani Enterprises was one of the six companies that filed bids. The other five companies were: MBCL , Vyom Trade Links Pvt Ltd, Swarana Projects Ltd, Gupta Coal India Ltd and Kyori Oremen Ltd. Vyom, CBI alleged, was a proxy of Adani Enterprises. Adani didn’t quote any margin while Gupta Coal quoted a margin of 11.3%.
It’s due to non-submission of margins. The eligible bidder MBCL quoted 2.25%. Hence, Adani quoted the same margin. Hence, Gupta Coal rejected on the ground of tender conditions.
Final Word
The NCCF officials gave contract to Adani Enterprises. They held post-tender negotiations with Adani Enterprises. It gave undue benefits. It received undue benefits. Therefore, but the company didn’t qualify.
“Instead of cancelling the bid of Adani Enterprises Ltd, senior management of NCCF conveyed the offer margin of NCCF to the company through one of its representatives Munish Sehgal who was sitting in the NCCF head office on July 10, 2010 in the evening and subsequently Adani Enterprises Ltd, on the same day informed NCCF that they agree to pay minimum margin charge of 2.25 per cent to NCCF,” the CBI FIR states.
