Adani firms being probed by Sebi, DRI

THE DRI PROBE RELATES TO A SHOW-CAUSE NOTICE ISSUED TO ADANI POWER LTD FIVE YEARS AGO

NEW DELHI: Firms controlled by billionaire Gautam Adani are being probed by the country’s markets regulator over compliance with local securities rules, the junior finance minister told parliament on Monday.

Besides the Securities and Exchange Board of India (Sebi), Directorate of Revenue Intelligence, or DRI, is also “investigating certain entities” belonging to the Adani Group for compliance to another set of local laws, junior finance minister Pankaj Chaudhary said in response to a question in the parliament. Chaudhary didn’t elaborate on the investigations or name the Adani group firms being probed.

“We have always been transparent with all our regulators and have full faith in them,” an Adani group spokesperson said in a statement Monday. The conglomerate had always complied with Sebi regulations and made full disclosures on “specific information requests” from the regulator in the past, according to the statement which added that the group had not received any communication recently.

The DRI probe relates to a show-cause notice issued to Adani Power Ltd five years ago. The federal agency gave an order saying that there was “no overvalaution of equipment” by Adani Power —a ruling that was challenged in a local tribunal and is subjudice, the spokesperson said, without elaborating.

Chaudhary declined to say if another probe by the I-T department was underway citing legal rules but clarified that no investigation was being conducted by the ED that looks into economic crimes including violations of India’s money laundering laws.