Delhi HC Puts On Hold Directions To Probe 'Over-Invoicing' Claims Against Adani Power

In December 2023, a Delhi HC bench asked the authorities to find facts and take appropriate action against power companies if found guilty.

The Delhi High Court passed an order to put on hold its earlier directions to the Centre, Central Bureau of Investigation (CBI) and Directorate of Revenue Intelligence (DRI) to expeditiously look into the allegations of over-invoicing of coal imports and equipment by Adani Power.

This decision by the high court came after the senior counsel appearing for Adani Power Ltd placed on record a copy of March 2023 order passed by the Supreme Court. The order dismissed the appeal filed by the Commissioner of Customs (Import) against Adani Power Maharashtra Power Limited.

The court was further informed that the department has filed a review petition against the SC order on behalf of the customs officer. Since the review petition is pending before the top court this makes the matter sub-judice. So, the High Court has put its earlier directions to the CBI and DRI under abeyance.

In December 2023, a Delhi HC bench comprising Justice Suresh Kumar Kait and Justice Neena Bansal Krishna asked the authorities to find facts and take appropriate actions against power companies if found guilty.

Adani Power filed two applications seeking recall of the December judgment that issued directions against it. In its latest order, the high court had put on hold these directions.

“In view of the fact that the review petition preferred by the department is sub-judice before the Hon'ble Supreme Court; the directions passed by this Court in para 52 of judgment dated 19.12.2023 in respect of M/s Adani Power Maharashtra Limited and M/s Adani Power Rajasthan Limited (now M/s Adani Power Limited) are kept in abeyance awaiting outcome of the said review petitions,” the court said in its order dated January 6.

The December judgment was passed in two PILs moved by the Centre for Public Interest Litigation and Common Cause, represented by Advocate Prashant Bhushan and Harsh Mander.

Bhushan sought a Special Investigating Team (SIT) probe in reports of DRI against various private power-generating companies for alleged over-invoicing. Mander sought CBI probe or a special SIT to check over-invoicing in power projects.