Indian conglomerate Adani Group, which is seeking public funds for a major coal mine in Australia, has been accused of siphoning hundreds of millions of dollars into offshore tax havens. The allegations, contained in an Indian customs intelligence document, claim the company inflated invoices for an electricity project to shift money overseas.
The 97-page file from the Directorate of Revenue Intelligence (DRI) alleges that Adani used a front company in Dubai to order equipment for a project in Maharashtra, India. The same equipment was then sold back to Adani-controlled businesses at inflated prices—sometimes eight times the original cost—with the excess funds allegedly routed through shell companies to a Mauritius trust controlled by Vinod Shantilal Adani, brother of CEO Gautam Adani.
The alleged fraud involves 15 billion rupees (US$235 million). If true, the scheme would have moved money out of India to avoid taxation and may have led to higher electricity prices for Indian consumers, as tariffs are partly based on construction costs. Some of the funds allegedly came from loans by the State Bank of India and ICICI, though neither bank is accused of wrongdoing.
Adani Group is awaiting a decision on a US$700 million loan from the Northern Australia Infrastructure Facility (Naif), an Australian government-backed fund, to build a railway for the Carmichael mine in Queensland. The mine, Australia's largest, has faced environmental protests, including concerns about dredging near the Great Barrier Reef and emissions equivalent to Malaysia or Austria annually.
The company strongly denies the allegations, stating it follows international competitive bidding for capital expenditures. A legal decision under Indian financial crime laws is expected soon.
