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by Admin
07 May 2024 2:49 AM
In a significant move towards ensuring transparency and accountability in the power sector, the High Court of Delhi has disposed of two public interest litigations (PILs), directing the Directorate of Revenue Intelligence (DRI) and the Central Bureau of Investigation (CBI) to conduct meticulous and expeditious investigations into allegations of over-invoicing by major corporate groups in the power projects.
The PILs, filed by the Centre for Public Interest Litigation and others, highlighted concerns over alleged over-invoicing in coal imports and equipment by companies within the Adani and Essar Groups. These practices, the petitioners claimed, led to inflated power tariffs and the illegal siphoning of funds.
In their judgment, the Hon’ble Mr. Justice Suresh Kumar Kait and Hon’ble Ms. Justice Neena Bansal Krishna observed, “In the peculiar facts of these cases, this Court finds it appropriate to direct the respondents to meticulously and expeditiously look into the allegations of the petitioners to unearth the actual factual position and take appropriate actions against the erring companies, if any, as per law.” This directive underscores the court’s commitment to unearthing the truth and ensuring justice in the face of complex financial allegations.
The DRI and CBI have been actively Investigating these allegations, issuing several Show Cause Notices and seeking international assistance through Letters Rogatory. The involvement of multiple companies and the complexity of transactions across different jurisdictions have made the investigation challenging.
The Ministry of Power, in its response, stated that power tariffs are determined through transparent processes, unaffected by the alleged inflated costs of projects. However, the court’s directive highlights the need for a deeper investigation into these claims to safeguard public interest and consumer rights.
This decision marks a crucial step in addressing concerns over corporate governance and financial ethics in India’s power sector. The outcome of these investigations is eagerly awaited, as it could have significant implications for the industry and its regulatory framework.
With the High Court’s directive, the DRI and CBI are expected to intensify their investigative efforts, bringing clarity and justice to a matter of significant public concern.
Date of Decision: 19th December 2023
CENTRE FOR PUBLIC INTEREST LITIGATION AND ANR. VS UNION OF INDIA AND ORS.