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Adani Accused of Fraudulent Coal Sales to TANGEDCO, $360 Million Loss

May 22, 2024, 06:49 AM

Adani Group has been accused of fraudulent practices involving the sale of low-grade coal as high-value coal to TANGEDCO, causing significant financial losses and environmental damage. Reports indicate that Adani purchased coal from Indonesia at $28 per metric ton, which was then sold in India at $91.91 per metric ton after being falsely labeled as higher quality. This practice, which dates back to January 2014, resulted in a loss of Rs 3,000 crores ($360 million) and increased pollution due to the use of lower-grade coal. The Directorate of Revenue Intelligence (DRI) has previously identified similar overcharging schemes by Adani. The fraudulent activities have led to a total overpayment of $70 million by the Indian public, according to allegations by Indian authorities. This scandal occurred during the tenure of the Congress-led UPA government.