Reporters uncover damning new evidence of Adani coal fraud
When Indian investigative agencies filed a case against Adani for allegedly falsely inflating the value of coal imports coming into India, Adani did everything in its power to stop regulators gathering the necessary evidence.
Now, reporters have uncovered some of the evidence Adani tried to hide, and it strongly suggests Adani manipulated both the price and quality of coal imports coming into India. Sometimes by as much as 300%! Aside from being a major financial fraud, this would have increased power costs for Indian businesses and households, and led to significantly worse outcomes for health, climate and the environment.
“Adani Group passed off low-quality coal as far more expensive cleaner fuel in transactions with an Indian state power utility, according to evidence seen by the Financial Times that throws fresh light on allegations of a long-running coal scam…
“They suggest that Adani may have fraudulently obtained bumper profits at the expense of air quality, since using low-grade coal for power means burning more of the fuel.”
- Financial Times, 22 May 2024
The evidence suggests Adani may have falsely inflated the value of coal by as much as 300%!
“New documents obtained by the OCCRP and shared with the FT show how in December 2013 the MV Kalliopi L ship left Indonesia carrying coal with a listed price of $28 a tonne. When it arrived in India in the new year, Adani sold the coal to Tangedco for $92 a tonne.”
- Financial Times, 22 May 2024
Indian investigative agencies have filed a case against Adani related to these allegations, but Adani has done everything in its power to thwart these investigations.
“In the 2016 notice, the DRI wrote that “in a significant number of cases” two sets of test reports were discovered for consignments: “one showing lower gross calorific value (GVC) and the other higher GVC.
“But its effort to seek more information about shipments in other jurisdictions was thwarted by Adani in court.”
This latest evidence of alleged fraud at the Adani Group will increase scrutiny on their business practices at a time when Adani is already facing a corruption probe from US investigators. Banks and investors must stop supporting Adani’s destructive and dodgy business practices and cut all ties immediately.
