Adani Group Refutes Report Of Probe By Tamil Nadu Government

The Adani Group has issued a clarification on reports that the Tamil Nadu government is launching an investigation against the company.

What Happened: The company said that it has not received any official communication from the state government around the claims outlined in the reports. Adani Enterprises said it could not verify the details mentioned in the story.

"Adani Enterprises Limited ("Company") has not received any notice and/or communication in this regard and hence the Company is not in a position to comment on the veracity of the above referred news item," the company said in a press release on Wednesday.

See Also: Adani Group Under The Scanner For Alleged Involvement In Tamil Nadu Coal Import Scam

Earlier this week, various media reports said that the Adani Group, along with other entities, was facing an investigation over an alleged coal import scam in Tamil Nadu.

The reports also claimed that the Directorate of Vigilance and Anti-Corruption (DVAC) has initiated an investigation into the suspected irregularities concerning tender conditions and the process of coal import.

In May, the Financial Times and the Organised Crime and Corruption Reporting Project published the findings of a joint investigation that alleged that around two dozen shipments of coal arriving at the Tamil Nadu coast in 2014 were originally classified as low-grade coal but sold by the Adani Group to Tamil Nadu Generation and Distribution Corporation (Tangedco) at three times their initial price.

Arappor Iyakkam, a Chennai-based non-government organisation, reportedly said the supposed overpricing may have cost the state corporation ₹6,066 crore between 2012 and 2016.

Jayaram Venkatesan, the convenor of Arappor Iyakkam, further claimed in an interview with The News Minute that the low-quality coal supplied to Tangedco was subsequently used in state thermal power plants and may have significantly escalated environmental pollution and led to Tangedco losing ₹1.5 lakh crore, resulting in increased electricity tariffs that burdened the public.

Price Action: Shares of Adani Enterprises were down 0.37% at ₹3,179.00 as markets opened on Thursday.

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