Probe launched into Tamil Nadu coal import scam involving Adani group

The Tamil Nadu Directorate of Vigilance and Anti-Corruption has initiated an investigation into allegations of significant irregularities that led to substantial losses for the state exchequer.

The Tamil Nadu government has authorized a probe into the multi-crore coal import scandal involving the Adani group and others. The Directorate of Vigilance and Anti-Corruption (DVAC) has launched a preliminary inquiry into allegations of serious irregularities in tender conditions and coal imports, resulting in considerable financial loss to the state government.

"Clearance has been granted by the government to initiate a preliminary inquiry and investigate allegations regarding coal imports by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO). This sanction, under Section 17A of the Prevention of Corruption Act, 1988, follows a complaint filed by Arappor Iyakkam," sources confirmed to The Hindu on Tuesday.

Arappor Iyakkam, an organization dedicated to transparency and accountability in governance, alleges massive corruption in coal imports involving TANGEDCO officials, Adani Global Pte Ltd., and others, amounting to ?6,066 crore between 2012 and 2016. Despite evidence and complaints filed in 2018 and 2019, no action was taken by the DVAC.

"In a letter dated January 31, 2023, Arappor Iyakkam's convener, Jayaram Venkatesan, highlighted to Chief Minister M.K. Stalin the lack of investigation into the coal import scandal, which has burdened TANGEDCO with substantial debts. He alleged corruption amounting to ?3,000 crore solely by Adani Global Pte Ltd. during the previous administration," the sources added.

The Comptroller and Auditor General (CAG) also flagged discrepancies, noting changes in tender conditions favoring Adani Global Pte Ltd. and select firms post-2011, with turnover requirements adjusted significantly.

"Evidence indicates that Adani Global Pte Ltd. and others were awarded tenders at prices $15 to $20 higher per metric ton than prevailing market rates, as confirmed by Indonesian government data at the time. Poor-quality coal imports further exacerbated losses in thermal power generation," Mr. Venkatesan stated.

Amid delays in DVAC sanctions, Mr. Venkatesan sought permission to protest silently in the State Assembly on June 26, 2024, citing government inaction in investigating the scandal.

Sources indicated that a preliminary inquiry under the previous AIADMK government did not proceed due to lack of prima facie evidence. Following recent clearance from the current administration, a special investigative team led by a Superintendent of Police has been tasked to reopen and investigate the case.