This judgement and arrest warrant by a US District Court follows years of questionable directives from the Ministry of Power, including mandatory procurement of expensive solar power and forced coal imports, benefitting a few business conglomerates while burdening consumers. These actions have strained DISCOM’s finances and defrauded the public.

A group of experts from the power sector, retired bureaucrats and bank officials called the People’s Commission on Public Sector and Public Services has “demanded an independent judicial investigation into these allegations to uncover the role of implicated entities and public officials, assess the financial loss to consumers, and ensure accountability. Those found guilty must face prosecution, blacklisting and financial penalties, including compensation to affected consumers. Besides, the government must present a full report to Parliament within six months to restore public trust and uphold consumer rights.”

The US  District Court (Eastern District Court of New York)’s recent indictment of several Indian companies, including Adani Green, part of the the Adani conglomerate and the Solar Energy Corporation of India (SECI), a CPSE, says the PCPSPS statement raises disturbing concerns not only about large-scale corporate corruption that evidently prevails in India and the USA but also about how fraudulent policies adopted by the Union Ministry of Power at the instance of favoured business conglomerates have defrauded electricity consumers across the country.

In this connection, he PCPSPS has also referred to their statements issued on  June 2, 2022, June 30, 2022 and  August 16, 2024 in which the group of experts had repeatedly pointed out how the Ministry of Power irregularly invoked its authority under Section 11 of the Electricity Act of 2003 to impose an obligation on State power utilities to buy electricity from solar power plants to meet at least 10% of their total electricity requirement, irrespective of its unit cost and affordability. Similarly, the Centre created a man-made coal shortage situation across the country and the Ministry of Power equally irregularly ordered the State power utilities to buy coal from overseas sources to cover the shortage. Both those measures indirectly benefitted a few domestic private business groups known to be close to the ruling political executive at the cost of electricity consumers across the country. Such consumer-unfriendly measures so blatantly adopted by the Ministry led one to the inevitable inference that the policies adopted by the Ministry of Power during the last several years were at the instance of a few business conglomerates close to the executive, certainly not for safeguarding the interests of millions of electricity consumers, many below the poverty line.

The PCPSPS has also expressed the hope that institutions like SEBI function independently so as to reinforce the integrity of the stockmarkets and elicit public trust.

The US court’s judgement, based on detailed investigations by US Security Exchange Commission and the US Federal Bureau of Investigation, clearly points to how the Adani Group officials acting in tandem with a US company persuaded SECI and the State-owned power utilities in several States including Andhra Pradesh, Tamil Nadu, Chhattisgarh, Odisha and J&K to sign one-sided Power Purchase Agreements (PPAs) that would enable those private companies to earn billions of dollars of profits over the next several decades, entirely at the cost of the electricity consumers in India. In the process, ably supported by the Ministry of Power’s anti-consumer policies and diktats, the private companies not only defrauded unwary consumers, crippled DISCOMs’ finances but also committed fraud on the public at large.

The PCPSPS has also demanded that,  under independent judicial oversight, a comprehensive investigation of this be taken up by CBI/ ED/ CBDT and other investigating agencies to gather further evidence from the US SEC/ FBI, factual evidence on the circumstances that led to the Union Ministry of Power adopting such misguided policies and issuing such illegal directives to States, the role of the concerned Indian business conglomerates including the extent to which they unduly benefitted, the one-sided nature of the PPAs, the role of public funcionaries at the Centre and in the States and the extent of loss suffered by electricity consumers in the country.

If the allegations emerging out of the indictment are found to be true, the Commission states that, not only the concerned business conglomerates and their promoters be blacklisted and prohibited from underataking activities in the electricity sector in the future but they should be forced to pay a deterrent penalty in addition to compansating electricity consumers for the additional costs borne by them on account of these acts of malfeasance. The culprits should be prosecuted for their criminal liability under the relevant laws.

Most of all a comprehensive report should be placed before Parliament within six months.

Related:

Modi govt distancing from Adanis? MoEFCC ‘defers’ 1500 MW project in Western Ghats

Supreme Court gives two journalists interim protection from Gujarat police arrest over article against Adani Group (Hindenburg issue)

UP cancels Adani’s tenders even as RSS’ Organiser inspires a social media onslaught alleging a conspiracy against ‘Adani brand of nationalism’

The post Adani controversy: Experts and retired bank officials demand accountability for corporate and policy corruption in India’s power sector appeared first on SabrangIndia.

However, the recent allegations by Hindenburg Research-a US Based short selling firm-against Securities Exchange Board of India(SEBI) Chairperson Madhabi Puri Buch saw no such reaction from the government. Meanwhile, the Public Accounts Committee (PAC) -constituted by the Parliament comprising of selected members of Parliament and currently headed by Congress’ Lok Sabha Member K.C.Venugopal has reportedly summoned the heads of SEBI and Telecom Regulatory Authority of India (TRAI) for a deposition on October 24, to review the functioning of top regulatory authorities.

Much has happened since August 10th- the day on which fresh allegations were levelled against Madhuri Buch that she had a stake in obscure offshore entities that were used to siphon money related to the Adani group. This article presents a picture of what has happened until now concerning the conflict of interest and other allegations against Madhabi Puri Buch and how she has responded to them. It is important to note here that Hindenburg Research- the primary mover of the allegations is a short selling firm which would benefit from the fall of the stock that they are shorting; and that Hindenburg had previously reported on alleged stock manipulation and related party transactions related to the Adani Group.

A brief background of the original Adani Report by Hindenburg becomes necessary here. Gautam Adani- the founder and chairman of the Adani group became one of the wealthiest people in the world and the wealth he amassed was largely through stock price appreciation in the group’s 7 key listed companies. The allegation was that that Vinod Adani- Gautam Adani’s brother – operates “vast labyrinth” of offshore shell entities with no operations, employees, independent addresses or meaningful online presence but were used to move billions of dollars into Adani’s publicly listed and private entities, often without required disclosure of the related party nature of the deals. It was further alleged that these offshore entities served as harbours to launder money through Adani’s private companies into listed companies’ balance sheets “in order to maintain the appearance of financial health and solvency.”

Primary Allegations by Hindenburg Research against Madhabi Buch-August 10, 2024

The following form the crux of first set of allegations by Hindenburg against Madhabi Buch-which the former claims to be based on Whistleblower Documents: 

A. On having stake in an Obscure allegedly Adani related fund, as alleged by Hindeburg:

1. A director who used to be with the Adani Group—Anil Ahuja— had set up an offshore entity -IPE Plus Fund through India Infoline in Mauritius which had only $38.43 million in assets under management at the end of December 2017. A Vinod Adani controlled firm called the Global Dynamic Opportunities Fund (GDOF)- which invested Adani Group’s siphoned funds in offshore entities to funnel back into stock markets, invested in the IPE Plus Fund too.
2. Madhabi Puri Buch and her husband-Dhaval Buch first appear to have opened their account with IPE Plus Fund on June 5th, 2015, in Singapore.
3. Before 2017 April-the month in which Madhabi Puri Buch was appointed as the Whole Time Member of SEBI, her husband Dhaval Buch wrote a letter to the fund administrator to make him the sole person authorised to operate the accounts.
4. Despite this change, on February 25th, 2018- Madhabi Buch wrote to India Infoline, from her personal email, to engage in business under her husband’s name to redeem funds.

Based on these, Hindenburg questioned the transactions with a fund that is linked to Adani, while in position of power.

B. On IPO to Real Estate Investment Trusts backed by Blackstone, as alleged by Hindenburg

The following form the crux of second set of allegations that Hindenburg levelled against Madhabi Puri Buch on her open encouragements of Real Estate Investment Trusts (REITs)- a form of investment backed by the firm her husband works for. A REIT is a company that owns income-producing real estate, allowing investors to earn dividends without direct property management.

1. Dhaval Buch-Madhabi Puri Buch’s husband worked as a Chief Procurement Officer at the consumer company Unilever, according to his LinkedIN and he has not worked in any fund, real estate or a capital markets firm.[1]
2. Despite the lack of any experience in these areas, the global private Equity firm hired him as a senior advisor in July 2019.
3. Blackstone is touted as the pioneer in listing REITs in the country along with its partners.
4.  Blackstone’s REIT Sponsorships: During Dhaval Buch’s tenure at Blackstone, the firm sponsored multiple REITs, including Mindspace REIT (India’s second REIT) in August 2020 and Nexus Select Trust (India’s fourth REIT) in May 2023. This period saw Blackstone becoming one of the largest investors and sponsors of REITs in India.
5. 2022-Present – SEBI Regulations and Advocacy: Following Madhabi Buch’s appointment as SEBI Chairperson in March 2022, SEBI proposed and implemented several regulatory changes benefiting REITs, including nomination rights for unit holders like Blackstone. Meanwhile, Madhabi Buch publicly advocated for REITs as a promising investment, without disclosing her husband’s affiliation with Blackstone, which stood to gain significantly from these developments

On the basis of these points, Hindenburg questioned whether there is a conflict of interest, if not a capture of the institution and stated that their findings raise questions that merit further investigation.

 C. On Madhabi Puri Buch owned company-Agora Advisory- reporting Revenue

The following form the crux of the third set of allegations made by Hindenburg against Madhabi Puri Buch on her having 99% stake in a consulting firm that earns revenue 4x of her salary.

1. Agora Advisory Private Limited was set up in India on May 7th, 2013, with consultancy as main business activity. Madhabi Buch remains 99% owner with Dhaval Buch being a director in the company. At the end of 2022, the company had generated INR 19.8 million revenue from consulting per its annual report- 4 times Madhabi Buch’s salary as Whole Time Member of SEBI as per previous disclosures.
2. Another firm called Agora Partners Pte Ltd was registered in Singapore to do business and management consultancy with Madhabi Puri Buch as 100% shareholder.
3. Madhabi Buch remained a shareholder of the Singaporean Agora Partners even after becoming the Whole-Time member of SEBI.
4. After she became the chairperson at SEBI on March 1st, 2022, the stake owned by Madhabi Puri Buch in the Singaporean Agora Partners was transferred to her husband on March 16th, 2022.
5. Since this offshore Singaporean Agora Partners is exempt from disclosing financial statements, it is unclear whether it derives any revenue from consulting business or not-a crucial piece of information for those assessing the probity of Chairperson’s external business interests.

On the basis of these, Hindenburg questioned if these details were disclosed and called for more transparency.

Reactions to Hindenburg’s allegations-August 11, 2024. 

On having funds in obscure allegedly Adani Related fund and redeeming it

The Buchs released a joint statement saying that that the investments in funds referred to by Hindenburg(the IPE Plus Fund) were made when both of them were private citizens living in Singapore and 2 years before she joined SEBI as a whole time member-something that the Hindenburg Report had already clearly stated. They stated that the reason to invest in IPE Plus Fund was that the Chief Investment Officer-Anil Ahuja is a friend of Dhaval Buch and after him leaving the fund, the investment was redeemed. The statement also said that Anil Ahuja had confirmed that there was no investment by the fund in any bond, equity or derivative of any Adani Group Company.

On IPO to Real Estate Investment Trusts backed by Blackstone

The statement released by the Buchs said that Dhaval Buch’s appointment as Senior Advisor to Blackstone was on account of his deep expertise in Supply Chain Management and that his appointment pre-dates Madhabi Buch’s appointment as SEBI Chairperson. The statement said that not only was Blackstone Group [and ICICI Group] added to Madhabi’s recusal list maintained with SEBI but also indicated that regulations of SEBI across all sectors are approved by the board and not by its Chairperson-regarding the allegation that tweaks were made to benefit and promote REITs.

On maintaining the companies-Agora Partners and Agora Advisory while being a SEBI Official

The Buchs stated that the two consulting companies set up by Madhabi Buch became dormant on her appointment with SEBI and that these companies and her shareholding in them, were explicitly part of her disclosures to SEBI. The Buchs said that after Dhaval Buch’s retirement in 2019, he started his own consultancy through these two companies allowing him to work with “prominent” clients in the Indian market. The statement said that that linking accruals in these companies to Madhabi Buch’s salary at SEBI is malicious. They added that the shareholding of the Singaporean entity was also disclosed when the shares were transferred to Dhaval Buch in 2022.

Hindenburg’s Counter-11^th August 2024

Hindenburg Research, in a series of tweets, raised concerns about the Buchs’ response to their report, pointing out “new critical questions” and “important admissions.” One key issue was that Anil Ahuja, a former Adani director, was both a fund manager and a friend of the Buchs. Hindenburg claims this creates a conflict of interest, as SEBI is investigating Adani, a group linked to Ahuja. Meanwhile, SEBI chairperson’s husband is friends with Ahuja and the Chairperson herself had investments in his funds through her husband, even after joining SEBI. Hindenburg also alleges that this fund was used to siphon Adani’s private funds into the Indian stock market.

The counter of Hindenburg had revealed that the Indian Entity-which Madhabi Buch had stated has been dormant, is currently active and generating consulting revenue. Highlighting this, it questioned what other investments or businesses the SEBI Chairperson has engaged in through her husband’s name while serving in official capacity. It also asked whether the “prominent clients” her husband was engaged in included companies that SEBI is tasked with regulating.

SEBI’s Statement-11^th August

On the same day, SEBI issued a statement saying that the relevant disclosures required in terms of holdings of securities and their transfers have been made by Madhabi Buch from time to time and that she has also recused herself in matters involving potential conflicts of interest.

Further scrutiny of Buch’s tenure took place from various angles — whether she recused from only Blackstone related matters or also from the matters related to companies in which Blackstone had a stake in; her role in disposing off an insider trading case against one Atul Goel and his company which had connections with Blackstone.

Meanwhile, news platform Scroll.in reported on 30 Aug, 2024 that Madhabi Buch did not recuse herself from the market regulator’s investigation into alleged stock manipulation by Adani Group according to a SEBI Board Member and that in fact, she oversaw SEBI’s Adani Probe. SEBI members must disclose financial interests to the board, specifically to the board’s secretary. SEBI’s 2008 conflict of interest code allows the board to scrutinize the chairperson’s disclosures, but it did not do so in Buch’s case, according to the board member.

Congress’s Allegations against Madhabi Puri Buch and subsequent Responses 

A. Congress alleged on September 02, 2024 that Buch was drawing regular income-in the form of salary via ESOPs from ICICI bank while being a full time member of the board- a violation of Section 54 of SEBI Employees’ Service Regulations, 2001. Section 54 of the rules mandate that no employee shall accept, solicit, or seek outside employment or office, whether stipendiary or honorary, without previous sanction of the Chairman. The Congress further alleged that Buch dealt with complaints against ICICI and its affiliates and in one case, exempted the ICICI Group in a merger and acquisition matter. adjudicated complaints against ICICI and its affiliates, which it said amounted to a conflict of interest.

The ICICI bank issued a statement saying that it has not paid a salary or granted Employee Stock Ownership Plan benefits to Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India, after she retired from the company in October 2013.

Following this statement, Congress further questioned why the Rs. 5.03 Crore of retiral benefits were not uniform in terms of frequency and the sum amount. The party’s Media and Publicity Wing Head Pawan Khera asked whether the ESOP Exercise policy was changed from ‘exercisable within 3 months of voluntary termination’ as stated in the policy submitted to the US Securities Exchange Commission to ‘exercisable within 10 years’ from the data of vesting too accommodate an arrangement with the SEBI Chairperson.

B. Congress alleged on September 6, 2024 that Madhabi Buch received rent from a company called Carol Info Services Limited, a company that shares its promoter with Wockhardt Limited. Wockhardt Limited’s executives were imposed penalties of Rs. 13 Lakh of insider trading; In June 2023, SEBI had barred a former executive of the company from buying, selling or dealing in the securities of Wockhardt Limited for one year. Pawan Khera, in a Press Conference, asked if it was appropriate for Buch to rent out her private property to a company that has been under constant scrutiny for insider trading.

C. On September 10, 2024- the Congress alleged that Agora Advisory Private Limited — the Indian entity in which Buch owns 99% of stake in—earned Rs. 2.95 Crore from Mahindra and Mahindra, ICICI Bank, Dr. Reddy’s, Pidilite, Sembcorp and Visu Leasing and Finance. Out of the Rs. 2.95 Crore, 2.59 Crore was paid by Mahindra and Mahindra alone, added the party. In quid pro quo, SEBI has passed order favourable to Mahindra and Mahindra, according to the party.

Mahindra and Mahindra denied these allegations as false and misleading, and stated that they had hired Dhaval Buch in 2019 after his retirement from Unilever for his expertise in Supply Chain Management. It also denied the allegation of quid pro quo orders.

Buchs’ Response to Congress’ Allegations

Firstly, quoting the statements by companies which paid Agora Advisory, the joint statement by the Buchs said that Dhaval Buch being hired by the companies was solely due to his expertise as a Supply Chain Professional.

Second, on receiving money from Sembcorp and Visu Leasing and Finance- the statement said that the assignment concluded, and income was accrued in 2016-17; on receiving money from ICICI bank, the statement said that the money was interests on deposits and that ascribing motive to it is “unfortunate and defamatory.”

Third, on Rental Income, the statement said that Madhabi Buch has not dealt with any files related to Wockhardt and that there are procedures for dealing with cases and that no investigation files go to the Chairperson.

Fourth, on ICICI ESOPs, the statement said Madhabi was a retiring employee for whom the ESOP rules were different i.e., exercisable within 10 years, unlike for resigning employees. The statement also said that SEBI’s guidelines permit board members including Chairperson to hold and transact in ESOPs provided requisite disclosures are made, which Buch has been doing since 2017. The statement also said that this drawing of money via ESOPS would not amount to moonlighting.

Finally, the statement said that the income tax returns filed by them were obtained using fraudulent and illegal means—breaching their privacy— and that all these matters were fully disclosed, and taxes were paid.

Conclusion

The allegations against Madhabi Puri Buch, SEBI Chairperson, highlight several unanswered questions and underline the need for greater public accountability in India’s regulatory institutions. Despite the Buchs’ defense and SEBI’s statements, critical concerns remain unresolved. Key among these is the possible conflict of interest between Buch’s role as SEBI Chairperson and her past business associations, as well as her oversight of the Adani probe despite her alleged connections. This also raises a larger question of the possible conflicts of interest when an influential private sector professional becomes a regulatory body chief.

Hindenburg Research raised issues about her relationship with Anil Ahuja, her husband’s consultancy work with Blackstone, and her involvement in companies like Agora Advisory. Questions persist about the transparency of her financial disclosures and whether SEBI has sufficiently scrutinized potential conflicts of interest, and whether SEBI had full understanding of such conflict or not, especially due to a board member saying that disclosures were not made properly. The important part about disclosures is that the be made without delay and with best of intentions. If they are made after their utility diminishes, it would not serve the purpose.

Moreover, Buch’s continued engagement in companies like Agora Partners even after assuming her role at SEBI raises concerns about regulatory oversight. The controversy surrounding her non-recusal in Adani-related investigations and the alleged non-disclosure of financial interests calls for a closer look at SEBI’s internal mechanisms to safeguard institutional integrity.

At the heart of these allegations is a broader issue—the need for robust public accountability. SEBI, as the guardian of India’s $5 trillion stock market, must ensure that its leadership is beyond reproach. Regulatory institutions like SEBI wield significant power over the financial ecosystem, and any hint of conflict or misconduct at the highest level can erode public trust. This scandal underscores the urgent need for more stringent checks, transparent investigations, and mechanisms to hold senior officials accountable. Strengthening these processes is vital to safeguarding the credibility of India’s financial markets and regulatory institutions.

[1] Whole the Hindenburg Report mentions that he has not worked in any Capital Markets position etc, his LinkedIn profile does show that he has been with Agora Advisory since his retirement from Unilever.

The post All You need to know about allegations against SEBI Chairperson Madhabi Puri Buch and her Response appeared first on SabrangIndia.

The post ‘No Means No’: Adani’s Land Woes in Australia appeared first on SabrangIndia.

Commissioned by the Stop Adani Alliance, which claims to be a growing grassroots movement of local action groups working to stop Adani’s what it calls “disastrous plans for a dirty new coal mine”, even as building “the biggest environmental movement in Australia’s history”, survey has been released amidst protests at dozens of locations in the country to “oppose” to the project.

The ReachTel surveyed about 2,200 people across Australia. It found 55.6% of respondents opposed the mine going ahead, which is more than twice the number who supported the mine. As many as 18.4% of respondents saying they were “undecided”.

On being asked what do they think of Queensland premier Annastacia Palaszczuk making an election commitment not to spend public funds on Adani’s project, 65.8% of those polled wanted her to veto the possible $1bn loan the federal government might give to the project through the Northern Australian Infrastructure Facility (NAIF).
 

The project site

An Adani project in Kutch

The post 56% Australians oppose Adani coalmine project, 65.8% want veto on $1 billion govt loan amidst massive protests appeared first on SabrangIndia.

Four Corners reporter Stephen Long said that he had been in Mundra, in Adani’s home state in Gujarat for less than 24 hours when the police turned up at the crew’s hotel. He said that their main concern was to safeguard the interviews and footage they had filmed on the story they were investigating. Long said, “We were questioned on and off for about five hours, the senior policeman kept on going outside and talking to someone on his mobile, and whenever he’d return the questioning, the hostility, would ramp up.”

“It was obvious they knew why we were there but everybody was avoiding the ‘A’ word: Adani.”, he added.

“They’d told us that if we stayed there’d be officers from three Indian intelligence agencies coming to see us the next day, plus we’d have an entourage of crime squad detectives and local police wherever we went,” Long said on camera while introducing the film. The journalists left India and in their subsequent story telecast in Australia on October 2, share concerns whether Australia should be supporting Adani’s controversial mine in Queensland.

This is the text that Four Corners put out:

“Why would the crime branch want to see us?” Stephen Long, reporter

When Four Corners travelled to India to investigate the activities of the giant Adani group, they soon discovered the power of the company.

While attempting to film and gather information about Adani’s operations, the Four Corners team had their cameras shut down, their footage deleted and were questioned for hours by police.

The team were left in no doubt that their investigations into the Indian company triggered the police action.

For months, Four Corners has been digging into the business practices of the Adani Group. This is the corporate colossus that plans to build Australia’s biggest mine site.

“I do know about Adani and that means thousands of jobs for regional Queenslanders …” Annastacia Palaszczuk, Qld Premier

The polarising debate around the proposed mine site in Queensland’s Galilee Basin is often pitted as a simplistic jobs versus greenies argument.

But there are influential figures in India who warn that Australians need to know much more about the Adani Group.

“You know, the Australian politicians are obviously not properly briefed by their offices.” Former senior energy official

On Monday Four Corners examines the troubled corporate history of the Adani group in India revealing the findings of government investigations into financial and environment crimes.

“The report found not accidental violations, the report found deliberate violations, wilful violations.” Former Government Minister

The program analyses the Adani Group’s opaque financial operations and investigates the ramifications for their Australian operations.

“What this tells you is that here is a business group that will not stop at anything to maximise its profits.”Economist

This investigation examines whether, in the rush to secure jobs and shore up the mining industry, Australian politicians have failed to properly scrutinise the company that’s now hoping to receive a taxpayer funded loan of up to $1 billion for its project.

“I think the Australian Government ought to do environmental due diligence, which it seems not to have done. It certainly has to do financial due diligence. Both due diligences are required, both for the financial side and from the environmental side.” Indian politician

The film is fast being picked up by organisations and the media across the globe.This is what Greenpeace reported, for The Citizen readers to get a sense of how this investigation is playing out across the globe:
“An expose aired last night by the ABC’s Four Corners program revealed a shadowy network of companies and trusts behind Adani’s Australian assets, which offer the Indian firm “multiple ways” to reduce their tax in Australia, experts say.

Adani Australia has previously boasted its Carmichael mine could boost Australia’s tax coffers by up to $22 billion over the life of the project.

However, Adani’s Australian assets are seemingly owned by companies domiciled in notorious tax havens such as the Cayman and British Virgin Islands, which provide a means to minimise tax paid in Australia.

The investigation also revealed that the man behind a British Virgin Islands company variously described as ARFT Holding Ltd, AFRT Holding Ltd, and Atulya Resources Family Trust, which appears to be the ultimate owner of Adani’s Australian assets, has been accused of money laundering.

Vinod Adani, the older brother of Adani Group chairman Gautam Adani, has been investigated by Indian authorities with ex-Adani Group employees and Adani companies for allegedly executing a “planned conspiracy of siphoning off foreign exchange abroad … and Trade Based Money Laundering”.

Adani has requested a $1 billion loan, currently under consideration, from the publicly funded Northern Australia Infrastructure Facility.

“The Four Corners revelations prove that Adani is a company which cannot be trusted with a taxpayer loan, or to build the world’s biggest export coal mine on the Great Barrier Reef coastline,” Greenpeace Australia Pacific Climate and Energy Campaigner Nikola Casule said.

“Now more than ever, it’s time for the government to rule out any public money for Adani and say no to the proposed $1 billion NAIF loan for Adani’s rail line connecting the proposed Carmichael mine and Abbot Point coal port.”

“Its secrecy, apparent use of tax havens and alleged money laundering provide the Australian government with all the evidence it needs to rule out even one cent of public money going to Adani’s rail line.”

This is what Adani group stated in its response:

Dear Mr Long,
The team from ABC Television while visiting Mundra did not adhere to the journalistic codes of conduct and fairness. While you had earlier expressed your desire to visit Mundra, without further discussion or intimation you and your team landed in Mundra and started filming the sensitive areas without proper permissions and any kind of intimation to the company officials. To our mind it is both unfair and unethical apart from a serious security breach at the industrial site locations in border area.

The Adani Group is one of India’s leading business houses with a core vision of nation building. The group has created a portfolio of businesses aligned with the national priorities of infrastructure development, food security, energy security and clean energy. Each of our businesses is integrated to the core of the country, touching millions of lives and generating direct and indirect employment for thousands of families.

We at Adani Group follow every principle of law that governs operations of company like us in India. To therefor suggest through a documentary, which in its essence have been made surreptitiously and without any legal sanction, is indicative of the fact that the purpose of the documentary is malafide and riddled with the singular agenda of national shaming. For reputable organisation like ABC Television to indulge in this form of ethical violation is truly sad.

On the issues mentioned in your last email, please find our response below. We request you to use the same verbatim, without tweaking its context.

Issue 1 – The reference that has been made to the Lokayukta of Karnataka, Retired Justice Santosh Hegde

Pursuant to the report by Justice Hegde and reports of CEC the Hon’ble Supreme Court passed an order directing CBI to investigate the allegations over illegal export of Iron Ore from Belekeri Port. After the detailed investigation CBI came to the conclusion that Adani Enterprises Limited and its officials had never violated any State and/or Central laws of India. Accordingly, CBI filed closer report and the same was accepted by the designated CBI court at Bangalore.

With regard to another allegation of “Illegal gratification to public officials”, Karnataka Lokayukta formed Special Investigation Team. Adani Enterprises Limited submitted all the data to SIT as required. However after the detailed investigation, SIT found that no case is made out against AEL & others. Accordingly, closer report was filed and the same was accepted by the court.

To summarise, our activities at Belerkeri Port have been conducted within the framework of Law. The Adani Group is absolute and religiously Law abiding organization and respect Law of the land.

Issue 2 – The ruling of HC of Gujarat about developments in the Mundra SEZ without valid environment clearances
The Gujarat High Court in its order passed in January 2014, ordered that 12 units operating in Mundra SEZ cannot operate till Mundra SEZ is granted the Environmental Clearance (EC). The said order was challenged before the Supreme Court of India and the Supreme Court stayed the order of Gujarat High Court and permitted 12 units to continue with their operational activities. The matter is pending before the Supreme Court.

There is no restriction for units to set up their facilities and operate in SEZ with their appropriate clearance, till SEZ is granted the EC. Even the Ministry of Environment and Forests (MoEF), Ministry of Commerce and Industries (MoCI) and Pollution Control Boards have granted clearances to units even irrespective whether the SEZ was having the EC or not. Therefore, it was not a case of development of Mundra SEZ without valid EC, as such practice has been followed in all SEZs across India. In any case, Mundra SEZ is also granted Environmental and CRZ clearance by MoEF on 15.7.2014.

Issue 3 – Sunita Narain on environment violation in Mundra
The Sunita Naraian Committee submitted its report in 2013 and it was India’s largest business daily The Economic Times which in July 2014 revealed the manner in which the committee was appointed. In any case, the committee’s findings were just that – recommendations. Neither they were absolute; nor were they binding or implementable because of the malafide agenda driven nature of those findings.

Based on the Report, MoEF issued a show cause notice in September, 2013 which has been disposed of on 18.9.2015. The final order is not challenged since. Therefore, Report cannot be cited to defame the Adani Group. Further, the Gujarat High Court dismissed the public interest litigation in April, 2015 concerning this issue and the Supreme Court of India also did not entertain appeal against the order of Gujarat High Court.

Issue 4 – National Green Tribunals decision on Hazira Port
The order that NGT has passed has been challenged before the Supreme Court of India. NGT failed to appreciate the facts and no reasons are given which supports the order. NGT observed that the company damaged mangrove whereas, in February 2007, MoEF itself substituted the condition based on NEERI report and permitted development in that area. The company came into picture only in November, 2010. Likewise, all the findings of NGT in its decision are wrong and contrary to the facts placed before it. In any case, the matter is pending before the Supreme Court and is sub-judice and it is unfair and unethical for responsible media to jump to any conclusion and report a story till the matter is finally decided.

Issue 5 – As for the really trite charge of money laundering
On August 22, the adjudicating authority of Directorate of Revenue Intelligence (DRI) has passed orders striking all proceedings launched by the DRI against Adani Group for alleged money laundering. This can be only be challenged at the higher appellate authorities and that too by governmental authorities. Since no challenge as of now has been made, there is not only complete acquittal but in fact a validation of what we at Adani Group has always been saying.

Adani Group adhere to the laws of the land in which we operate – be it India or any other of the 50 geographies we work in. To suggest that we are non-compliant, deviant or unethical will once again attract defamation and severe legal action. As an organisation with more than 11,000 employees spread across the world, stakeholders and vertical businesses ranging from agriculture to port to logistics, we cannot be held to either ransom or blackmail by media organisations that indulge into sensationalism without any basis and contrary to facts.

For any media organisation to jump the gun and believe that we have indulged in any malafide is in itself is illogical because we shall have to wait for the Supreme Court of India to pass its judgement. Some of the issues have even attained finality which cannot be blatantly ignored and no damage can be inflicted on Adani Group on the basis of vexatious allegations.

Please note that any manipulation of this message by way of twisting the facts will compel us to undertake legal recourse. We request you to use our response in totality to avoid any misinterpretations.

Thanks & Regards,
Mitul Thakkar
Associate General Manager Corporate Communications Adani Enterprises Limited

(Interestingly, the Adani’s have not slapped a legal notice on Four Corners limiting the response so far to the above rejoinder)
 

The post How the Gujarat Cops Questioned an Australian Film Crew Investigating Adani appeared first on SabrangIndia.

Here is how the Australian’s are fighting Adani, the Indian multinational conglomerate seeking to build the world’s biggest new coal mine in central Queensland’s Galilee Basin – the Carmichael mine. Adani’s proven track record of alleged environmental destruction, human rights abuses, corruption and illegal dealings should sound a stern warning for the Indian government as well looking to do business with Adani at the expense of their own countrymen.

Below are excerpts from the reports relevant to India.

Adani’s sunken coal ship (allegedly) devastates tourism, beaches and marine life in Mumbai

In 2011, an unseaworthy Adani coal ship sank off the coast of Mumbai, causing a massive oil spill and spilling 60,054 metric tonnes of coal into the ocean. Adani did nothing to clean up the mess for five years, as the spill destroyed mangroves, polluted beaches, and caused serious damage to the local marine environment and Mumbai’s tourism industry.

In 2016 Adani and others were found liable for the spill and for failing to clean it up, and were fined the equivalent of AU $975 000.

The consignment of 60054 MT of coal has caused marine pollution and continues to be a cause and concern for environmental pollution. The Respondents are defaulting entities which have not complied with law and have adopted a most careless and reckless attitude in relation to protecting the marine environment.
– Key finding of the National Green Tribunal’s judgement

Adani (allegedly) breaks the law to destroy environment in Mundra

“Irreversible and irreparable damage has been done to the area by the Adani Port and it is difficult to monitor the extent of the damage today. The mangroves have been destroyed and it has created an environmental disaster. The fisherfolk and common people affected by this degradation cannot fight such a big company.”
– Mahesh Pandya, an Ahmedabad-based environmentalist.

In the coastal town of Mundra in India, Adani operates one of the world’s largest coal-fired power plants. Investigations of the Mundra project by Indian officials, independent committees and documentary film crews reveal a record of environmental destruction, harm to local communities, and a failure to comply with environmental regulation and development permits.

Adani (allegedly) illegally cleared 75 hectares of protected mangroves, flattened sand dunes, dredged the ocean, and blocked waterways. These activities created a diminished and diseased fish population, turned the groundwater saline, and flooded a village.

The outcome for the local villagers was catastrophic. Having traditionally relied on fishing and farming to survive, they are now left with barren land and oceans — their fish stocks decimated.

Villagers reported Adani using bribery and intimidation to silence anyone who tried to challenge them.

Adani deprive 80 families of access to their fishing grounds at Hazira Port

Adani had no approval to begin work at their Hazira Port when they started illegally wiping out mangroves and claiming land. They blocked access to traditional fishing areas for 80 fishing families from the village of Hajira. Further, they destroyed mangroves and allegedly destroyed the habitat of a critically endangered bird species.

In January 2016 Adani was ordered to pay $4.8 million AUD for compensation and restoration and had their environmental approval revoked.

Threats and alleged police intimidation in land grab in Jharkhand
Media reports from India reveal Adani is using police intimidation, bribery and threats to dispossess people of their land in Jharkhand — where the company want to build two power plants.

Villagers and government officials say the Jharkhand Government has (allegedly) deliberately undervalued local villagers’ land to allow Adani to acquire the land at a fraction of the land’s real value. One legislator raised the issue in state assembly, contending landowners are expected to receive about one tenth of the value of their land.

Community meetings on the sale of the land have been surrounded by a heavy-handed, intimidating police presence.

Bribery and illegal exports in Karnataka

Adani (allegedly) engaged in broad-ranging bribery to conceal the illegal export of 7.7 million tonnes of iron ore. In 2011, the Ombudsman of the Indian state of Karnataka investigated the corruption, and discovered a staggering scale of bribery.
Adani had (allegedly) bribed:

• the police,
• local politicians,
• customs officials,
• the State Pollution Control Board,
• the Port Department,
• the Weight and Measurement Department,

in return for facilitating and hiding their illegal exports.

Also, Adani routinely accepted iron ore from traders who were not permitted to supply the ore. The Ombudsman concluded that this scam, in which Adani was a major player, resulted in the illegal export of around 7.7 million tonnes of ore between 2006 to 2010.

Black Money

Like big power companies in Australia, Adani are perfectly happy to s….. their customers to inflate their profits. They lied about the cost of imported coal and equipment in order to evade tax and trick regulators into letting them charge Indian consumers much higher prices for their coal-fired power. Their gas supply arm was also found guilty of abusing its market power to overcharge its customers. Adani even (allegedly) colluded with a state power company to drive up prices in the midst of a power shortage crisis.

Six Adani Group companies are under investigation for lying about the quality and, hence value, of coal imported from Indonesia, allowing them to get away with charging higher prices, demanding public handouts, and driving up costs for Indian electricity customers. There is solid evidence that they’ve already ripped off their customers to the tune of over $200 million AUD.

Adani is also under investigation for a billion-dollar fraud, exaggerating the value of equipment imports into India by over 60%. Adani allegedly used an offshore holding company in Mauritius to siphon off much of the extra money from inflated invoices.

The Mauritius holding company is managed by Vinod Shantilal Adani, the older brother of Gautam Adani, and Chairman of the Adani group. Vinod is the sole director of a number of Singapore companies that own Adani subsidiaries in Australia. These companies are ultimately owned by a company registered in the Cayman Islands.

All evidence gathered suggests that the total value declared for the goods imported was Rs 9,048.8 crore ($1.7 billion AUD) whereas the actual value was Rs 3,580.8 crore; a difference of Rs 5,468 crore which has been siphoned ($1.07 billion AUD).

Mate’s rates – undue benefit from political connections

Adani chairman Gautam Adani and Indian Prime Minister Narendra Modi are old friends. Modi even travelled in an Adani-branded private jet during his election campaign. And it turns out Adani isn’t afraid of calling in favours.

While Modi was Chief Minister of Gujarat, Adani acquired vast swathes of land from farmers and locals in Mundra at a fraction of market value. It left locals across 14 villages dispossessed, and Adani clear to start construction.

Media reports revealed that the government sold 14,305 acres of land at Mundra to Adani at between 1 and 32 rupees per square metre (between 3 and 60 cents AUD), far less than offered to companies doing comparable projects.

Further, the Comptroller and Auditor General of India found that two pieces of forest land (1,840 hectare and 168.42 hectare) had been incorrectly classified, resulting in yet another undue benefit to Adani.

Price-gouging energy customers during power shortages in Gujarat

In 2013, the people of Gujarat were suffering from power shortages. At the same time, Adani was (allegedly) colluding with the local power authority to gouge prices and rip people off by providing short-term power at extremely high prices.

Adani’s competitors lined up to supply the people of Gujarat cheaper, long-term electricity but their tenders were blocked by the power authority. This resulted in massive price-hikes and ensured the only energy available was the highly expensive, short-term supply provided by Adani. Adani’s competitors subsequently brought litigation against the power authority for the price-gouging.

In 2014, Adani was found guilty of using its dominant market position to impose unfair conditions on gas customers. They were ordered to change their gas supply contracts and pay $4.8 million AUD.

Adani accused of deliberately ripping off taxpayers and laundering money while trading in cut and polished diamonds and gold jewellery

A special investigative unit of the Indian tax department (the Directorate of Revenue Intelligence) spent over a decade investigating Adani for laundering money and dodging $195 million AUD in taxes.

One of the more audacious alleged attempts to dodge taxes and hide the proceeds involved the trade of rough-cut diamonds and gold jewellery. Adani appears to have set up a complex web of front companies specifically to fleece Indian taxpayers by misusing various government export incentive schemes. Adani then attempted to hide its illicit profits by storing imported diamonds in a bond, then re-exporting them at artificially inflated prices.

The overwhelming weight of evidence collected by the Directorate of Revenue Intelligence was upheld in a civil court case, although it was later dismissed when the department actually tried to make Adani pay the money back.

“…it was pernicious and blatant misuse of the provisions of the Scheme…This Court…cannot come to the aid of such petitioners/exporters who, without making actual exports, play with the provisions of the Scheme and try to take undue advantage thereof.”

Adani’s assets lead to tax havens

Adani’s corporate structure is deliberately convoluted and opaque. There are 26 Adani subsidiaries registered in Australia, 13 of which are ultimately owned through the Cayman Islands.

The Carmichael rail line that Adani are seeking a $1 billion taxpayer loan for, is ultimately owned by an Adani entity operating out of the  Cayman Islands, a notorious tax haven. This presents a clear risk that public money will be siphoned offshore with no returns for the Australian taxpayer.

The ownership of the Abbot Point coal port is so shrouded in deception and confusion that it remains unclear who actually owns it.

There are massive discrepancies between what Adani says in India and what it says in Australia about the ownership structure of Abbot Point. But one thing is clear — Adani is lying to someone.

Accounts lodged in India have removed Abbot Point from a publicly listed Adani company and attributed ownership of the coal port to a private Singapore company, ultimately owned by an Adani family entity in the Cayman Islands. However, Australian financial accounts suggest the listed Indian company retains ownership of Abbot Point.

The absence of correct information about the ownership of Abbot Point may amount to misleading or deceptive conduct.

Dodgy financial statements

Adani’s most recent financial report lodged with ASIC did not disclose its immediate parent company and provided no detail about the actual or potential transfer of the ownership or control of Abbot Point from an Indian based Adani entity to one based in Singapore (also a known tax haven).

Deaths, illness and exploitation at Adani worksites

Exploiting workers in Gujarat

An explosive Fairfax Media investigation uncovered reports of serious exploitation of Adani’s workforce, including the (alleged) use of child labor and underpaid workers, during construction of a luxury housing project in Gujarat.

Read more here

Labourers were forced to live in makeshift houses with dirt floors, no running water, and no toilets. The sanitary conditions were so dismal that workers suffered several outbreaks of cholera from contaminated drinking water.

Adani’s workers were underpaid and overworked. Almost a quarter were paid less than the minimum wage of $4 a day, and some were not paid at all — Adani forcing them to wait for months to get paid, while they lived on a pathetic $9 a week ‘food allowance’.

A 12 year old boy said he was paid about $2.60 a day to carry water to the labourers for 12 hours a day, six days a week.

Adani avoided complying with state and federal laws by outsourcing their labour to multiple contractors.

Deaths in power plants

In 2016 a hot water pipeline burst at Adani’s coal fired power plant in Mundra, burning 21 workers. Seven of whom later died as a result of their injuries.
Read more here

There have been several reports of accidents and deaths at another Adani power plant in Tirora which suggest the safety standards are very lax. In September 2014 a worker was killed in a blast, and just a few months later another worker was killed after a structure collapsed while air-conditioning units were being installed.
Read more here

In 2012 another labourer was killed and two others critically injured after being trapped under falling pipes.
Read more here

Conclusion
This isn’t a company that has a chequered past, or a slightly blemished record. This is a company which has proven itself (allegedly) corrupt, destructive and deceitful to its core.

It has no regard for its own workers or the law, much less the environment or the local communities it works in. It operates with a vicious mentality where human or environmental damage are par for course.

The agreements and commitments it makes appear worthless. This is a company that doesn’t hesitate before breaking the law, contract conditions or moral boundaries in its reckless pursuit of profit.

Adani’s proven track record of (alleged) environmental destruction, human rights abuses, corruption and illegal dealings should sound a stern warning for any government looking to do business with Adani.

If you are interested in finding out more about which particular Adani entity is culpable for, or stands accused of, the various crimes detailed in this report, please click here to download a detailed legal research briefing from Environmental Justice Australia and Earthjustice.

The original report can be read here – The Adani Files

This article was first Published on GreatGameIndia.com
 

The post #AdaniFiles – Short History Of A Dangerous (Allegedly) Criminal Organization, Environmental Justice Australia Report appeared first on SabrangIndia.