The Supreme Court on Wednesday paved the way for the Directorate of Revenue Intelligence, which looks at irregularities in imports and exports (aimed at evading tax, or benefiting from incentives), to restart its investigation against the Adani group in a case concerning alleged overvaluation of coal imports from Indonesia.
The apex court stayed the October 17, 2019 judgment of the Bombay high court which granted relief to Adani by quashing the letters rogatory (LRs) sent to various countries, including Singapore seeking details of the group’s coal imports from Indonesia. DRI claims much of the coal was imported through Adani’s Singapore subsidiary.
A spokesperson for Adani did not respond to queries.
Solicitor General Tushar Mehta, who appeared for DRI asked that the agency be allowed to continue its investigation.
A letter rogatory which is issued by a magistrate under Section 166-A of the Code of Criminal Procedure (CrPC), is a request to a judicial or any other authority in a foreign jurisdiction to gather evidence by examining and recording the statement of any person acquainted with the facts of the concerned case or requiring such person to produce any document or any other object relevant to the case.
A bench headed by Chief Justice of India (CJI) SA Bobde and comprising justices BR Gavai and Surya Kant after hearing the appeal filed by Directorate of Revenue Intelligence (DRI) stayed the high court verdict and sought a reply from Adani Enterprises Limited, the flagship of the Adani group.
The order passed by the SC effectively gives a green signal to DRI, the apex intelligence and investigative agency for matters relating to violation of
Customs Act, to gather information from foreign countries with the help of authorities in those jurisdictions.
DRI had earlier petitioned the Additional Chief Metropolitan Magistrate, 8th Court Mumbai with a request to issue letters rogatory to authorities in Singapore, UAE, Hong Kong, and British Virgin Islands in order to secure necessary information.
The magistrate acceded to the request and issued four letters rogatory under the Mutual Legal Assistance Treaty on different dates. The letter of rogatory to Singapore which was issued on August 2, 2016 and forwarded to the competent authority in Singapore was challenged by the Adani group before the Bombay high court.
