The Adani Group, along with other entities, is facing an investigation over an alleged coal import scam in Tamil Nadu that has reportedly led to significant losses for the state government.

What Happened: The Directorate of Vigilance and Anti-Corruption (DVAC) has kickstarted a preliminary inquiry into the alleged irregularities in the tender conditions and coal import process, The Hindu reported.

The allegations were brought forth by Arappor Iyakkam, a Chennai-based organisation advocating transparency and accountability in governance.

They allege that a significant corruption scandal involving Tamil Nadu Generation and Distribution Corporation (Tangedco) officials, Adani Global and others resulted in a loss of ₹6,066 crore during the period from 2012 to 2016. Despite evidence-based complaints lodged in 2018 and 2019, the DVAC did not register any case.

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Arappor Iyakkam convener Jayaram Venkatesan had written to Chief Minister MK Stalin in January 2023, expressing concerns about the lack of an investigation into the coal import scam, resulting in Tangedco facing significant losses and accumulating debt.

Venkatesan also alleged that the tender conditions were altered after 2011 to favour Adani Global and a small group of firms importing coal. He claimed that Adani Global and a few others were given tenders at rates that were $15 to $20 higher than the market rate per metric ton.

Following the green light from the current government to reopen the case, a special team led by a superintendent of police-rank officer has been formed to investigate the matter.

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

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