Adani Group under fire for alleged involvement in Tamil Nadu coal import scam

THE Adani Groupalong with other entities, is facing an investigation into an alleged coal import scam in Tamil Nadu that allegedly resulted in huge losses to the state government.

What happened: THE Directorate of Vigilance and the Fight against Corruption (DVAC) has launched a preliminary inquiry into alleged irregularities in the tender conditions and coal import process, The Hindu reported.

The allegations were made by Arappor Iyakkama Chennai based organisation that advocates transparency and accountability in governance.

They allege that a major corruption scandal involving Tamil Nadu Production and Distribution Company (Tangedco), Adani Global officials and others resulted in a loss of ₹6,066 crore during the period 2012-16. Despite evidence-based complaints filed in 2018 and 2019, the DVAC did not register a single case.

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Arappor Iyakkam coordinator Jayaram Venkatesan wrote to the chief minister MK Stalin in January 2023, expressing concerns over the lack of investigation into the coal import scam, which resulted in Tangedco suffering significant losses and accumulating debts.

Venkatesan also alleged that the terms of the tender were changed after 2011 to favour Adani Global and a small group of coal importing companies. He alleged that Adani Global and a few others received bids at prices $15-20 per metric tonne higher than the market price.

Following the current government's green light to reopen the case, a special team led by a police commissioner was formed to investigate the case.

Price action: Adani Enterprises was trading 0.02% higher at ₹3,153.90 on Monday morning.

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