Adani Group gets Rs 5,500 crore tax notice

Mumbai: The Directorate of Revenue Intelligence (DRI) has slapped a Rs 5,500-crore show-cause notice on Adani group for alleged over-valuation of capital  equipment imports. The show-cause notice was issued by the Mumbai office of  DRI and agency sources said the notices were  issued against three companies of the Ahmedabad-based Adani  Group for alleged over-valuation by Rs 2,000 crore of capital equipments for its power projects.    

With over 10,000 MW of generation, Adani Power is the largest private power producer in the country and also the largest ports operator in the country with its Kandla Portovertaking the state-run JNPT last fiscal.  The DRI notices were issued to the Gautam Adani-promoted  three group companies- Adani Power Maharashtra, Adani Power  Rajasthan, Maharashtra Eastern Grid Power Transmission Company and a contractor to the last entity.    

According to DRI officials, the notice followed the investigation by the agency, wherein they were probing     over-valuation of import of machinery and equipment by various Adani Group firms from a UAE-based company.  It can be recalled that last November, the Central  Board of Excise & Customs had reminded the Directorate General   of Foreign Trade to cancel import duty benefits issued to the Adani Group in 2004.   

Adani Group had also announced the purchase of the Dhamra Port in Odisha from Tata Steel, L&T for Rs 5,500 crore.