After the Hindenburg report in January 2023, Adani Group's fortunes were thrown into the middle of the storm as questions were raised against the company's operations and its rectitude at large.
Inflated Prices For Inferior Coal
The company's business and its shares hit turbulence. After a chaotic period that also drew the ruling party into the happenings, the company managed to crawl its way back to some kind of normalcy.
Now, in a new development, according to an OCCRP report that was also published by the British publication Financial Times, the company allegedly sold low-grade coal at inflated prices in the Indian market in 2014.
According to OCCRP, a shipment carrying 69,925 metric tonnes of coal meant for a public sector company reached Chennai from Indonesia on January 9, 2014. After taking a long detour on its way from its original route, according to OCCRP, the prices of the said coal tripled to USD 91.91 per metric tonne from about USD 28 per metric tonne.
24 Such Shipments Arrived in India
This particular case was not isolated, according to the documents obtained by the publications. A cumulative 24 such shipments came to India between January and October of 2014, wherein coal, which was originally supposed to be low-grade material, was sold at inflated prices, even thrice the original rate.
A cumulative 24 such shipments came to India between January and October of 2014, wherein coal, which was originally supposed to be low-grade material, was sold at inflated prices, even thrice the original rate. | File/ Representative image
The report has sighted and thereby attributed this to multiple documents, including banking documents, invoices, and details of investigations by India’s Directorate of Revenue Intelligence (DRI). The investigation also obtained leaked documents from Adani's Indonesian coal supply partner.
This comes at a time when India is moving towards the end of its much-discussed General Elections of 2024. It is also interesting to note, that the DRI issued a notice in 2016 alleging manipulation, which has now been strengthened by these recent developments.
The Adani group has yet to officially respond and comment on the matter on their official social media channels or through an exchange filing.
As of May 23, the company shares across the board are trading in green. Shares of the group's flagship, Adani Enterprises, increased 0.33 per cent to reach Rs 3,151.35 in the early hours of the day's trade.
