Adani Suspected of Fraud: Allegedly Selling Low-Grade Coal as High-Value to Tangedco
Image Credit:- Buisness Today
Senior Congress leader Rahul Gandhi has accused Adani of committing large-scale fraud by selling low-grade coal at three times its actual value, allegedly looting thousands of crores in the process. Gandhi’s comments came after a Financial Times report suggested that the Adani Group misrepresented low-quality coal as expensive, cleaner fuel in transactions with an Indian state power utility.
Gandhi questioned whether the Prime Minister would reveal the extent of the involvement of enforcement agencies like the ED, CBI, and IT in ignoring this apparent corruption. He posted on X (formerly Twitter), highlighting what he called a major coal scam under the BJP government, where Adani allegedly sold substandard coal at inflated prices for years.
Gandhi assured that after June 4, the Indian government would thoroughly investigate this massive scam and account for every penny stolen from the public. Supporting this stance, Congress leader Jairam Ramesh announced that if the INDIA bloc wins the 2024 Lok Sabha Elections, they will launch a probe through a Joint Parliamentary Committee (JPC) into the so-called ‘Modani’ mega scam.
Ramesh’s statement on May 22 detailed that all the financial advantages and corrupt practices benefiting Adani under the Modi administration would be scrutinized, including allegations of over-invoicing coal, funneling ₹20,000 crore of illicit funds back to Adani companies, and forcing Indian businesses to sell assets to Adani.
The allegations are based on documents obtained by the Organized Crime and Corruption Reporting Project (OCCRP) and reviewed by the Financial Times, indicating that Adani may have secured exorbitant profits at the expense of environmental quality, as burning low-grade coal necessitates using more fuel. The ongoing Lok Sabha elections have already seen voting completed for 428 out of 543 seats, with the final two phases scheduled for May 25 and June 1.
Votes from all seven phases will be counted on June 4. The BJP-led National Democratic Alliance (NDA) aims to secure a third term under Prime Minister Narendra Modi, targeting 400 seats, while facing a strong challenge from the opposition parties united under the INDIA bloc led by the Congress.
Author:- Apoorva Arora