Adani China Connection Implicated In The Coal-Procurement Scam

An FIR by CBI relating to the alleged conspiracy to rig the coal import tender floated by APGENCO was lodged in India’s capital, New Delhi, which implied Adani’s connection to China in the coal-procurement scam.

The story begins on 26 June 2010, when the Andhra Pradesh Power Generation Corporation (APGENCO), a company owned by the state government of Andhra Pradesh in southern India, floated a tender to procure 600,000 metric tonnes of imported coal for three of its coal-power stations. Six companies—Maheshwari Brothers Coal Limited, Swarana Projects Private Limited, Gupta Coal India Limited, Kyori Oremen Limited, Adani Enterprises Limited (‘Adani Enterprises’) and Vyom Tradelinks Private Limited (VTPL)—participated in the bidding. Adani Enterprises won the bid.

Almost a decade later, on 15 January 2020, the Central Bureau of Investigation (CBI), the premier police investigative agency in India filed a first information report (FIR) against Adani Enterprises and three senior officials of the public-sector company National Cooperative Consumer Federation (NCCF). The FIR was filed in the designated court of the CBI in New Delhi. Those named were accused of criminal conspiracy to manipulate the tender proceedings to ensure Adani Enterprises won the bid.

The CBI comes under the Department of Personnel in the Ministry of Personnel, Pension and Public Grievances, that is headed by a Minister of State (or junior minister in the Council of Ministers in the Union Government of India) who, in turn, works under the Prime Minister of India – thus, in effect, the operations of the CBI come directly under the administrative control of the Prime Minister’s Office. Its workings are explained at the end of this story.

The FIR relating to the alleged conspiracy to rig the coal import tender floated by APGENCO was lodged in India’s capital New Delhi where the CBI is based.

Details about how three senior officials of the NCCF were accused by the CBI of manipulating tender proceedings in 2010 to ensure Adani Enterprises won the contract to supply imported coal to APGENCO have been widely reported in the media. The Adani Group has denied any wrongdoing.

Amongst the allegations against Adani Enterprises and others was this one:

Gautam Adani, who heads the ports-to-power conglomerate Adani group, is planning to sell stake worth around $450 million in one of its subsidiary, Ambuja Cement, a Financial Times report said on March 10.

You can read more about this topic here.

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