Sebi, DRI Probing Some Adani Group Companies: MoS Finance Tells LS

The Securities & Exchange Board of India and the Directorate of Revenue Intelligence (DRI) are investigating some Adani Group companies, minister of state for finance Pankaj Chaudhary told the Lok Sabha on Monday. He said there were no investigations by the Enforcement Directorate, which probes money laundering cases.

“Sebi is investigating some Adani Group companies with regard to compliance with Sebi regulations. Further, the Directorate of Revenue Intelligence is investigating certain entities belonging to the Adani group of companies under laws administered by it,” Chaudhary said.

An Adani Group spokesperson said the conglomerate had not received any recent communication for information from the market regulator.

“We have always been transparent with all our regulators and have full faith in them. While we have always been fully compliant with applicable Sebi regulations, we have made full disclosure to Sebi on specific information requested from them in the past,” the spokesperson said.

MoS Pankaj Chaudhary was responding to a question on whether foreign portfolio investors (FPLs) or Adani entities were under investigation by Sebi, income tax authorities, ED, DRI or the Ministry of Corporate Affairs for suspicious transactions.

“As far as investigation under Income Tax Act, 1961, is concerned, disclosure of information regarding specific taxpayer is prohibited except as provided under Section 138 of the Act. No such investigation is going on in the Enforcement Directorate,” Chaudhary said in a written reply to the question.

The minister said six companies of the Adani Group were listed in India.

“The holding of FPIs in the companies was based on day-to-day trading of shares and thus dynamic,” he said, replying to a question on the holding of FPIs in these companies.

On June 16, 2016, Sebi had directed depositories to freeze some beneficiary accounts of certain FPIs, Crest Fund and APMS Investment Fund, over the issuances of global depository receipts by a few listed Indian companies.

“However, no order in respect of other beneficiary accounts of these three FPIs had been passed by Sebi,” the minister said.

Shares of Adani Group firms fell 14.77% on the BSE on Monday, even as the benchmark Sensex ended 1.1% lower.

The group said the matter related to the DRI investigation was sub juice. The DRI had issued a show cause notice to Adani Power about five years ago and the group had received a favorable order from the DRI’s adjudicating authority, confirming that there was no over- valuation of equipment, the spokesperson said.

“The department has approached the tribunal (against the adjudicating authority’s order) and the matter stands sub juice now,” he added.S-ET

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