Adani Power slips over 2% on reports of over-valuation of equipment imports

NEW DELHI: Adani Power Ltd slipped as much as 2.6 per cent in trade on Thursday on reports that the oilseeds-to-ports Adani Group has come under the scanner of the country's revenue intelligence agency as well as the Enforcement Directorate.

The Mumbai unit of the Directorate of Revenue Intelligence (DRI) has formally opened a case for alleged 'over-valuation' of capital equipment for power projects against the Gujarat-based group, widely regarded as close to Narendra Modi, BJP's prime ministerial candidate, ET reported.

At 09:25 a.m.; Adani Power recouped some of the morning losses and was trading 1.1 per cent lower at Rs 39.10. It has hit a low of Rs 38.50 and a high of Rs 39.30 in trade today.

The agency is "investigating gross overvaluation of import of equipment and machinery by various entities of Adani Group from a UAE-based intermediary", according to an internal DRI report compiled in December.

ET spoke to multiple sources within the agencies and reviewed the report which claims that more than Rs 2,000 crore had been "siphoned off ".

"An amount of Rs 2,322.75 crore has been siphoned off abroad by Adani Group by resorting to over-valuation of imports in the name of various group firms," the report says.