The FT report claimed that these 30 shipments had an export price of $139 million when they left the Indonesian shores. After reaching India, they were allegedly registered as having an import price of $215 million, a 52 per cent increase
Adani Group shares witnessed significant selling pressure on Friday, a day after the Financial Times reported that the Gautam Adani-led group was allegedly importing billions of dollars of coal at prices above market prices to make consumers and businesses in India pay more for electricity.
The UK-based publication reported that its investigation had found that, between January 2019 and August 2021, the energy-to-ports conglomerate had allegedly inflated the price of its imported coal by around $73 million across 30 shipments that the newspaper examined.
The FT report claimed that these 30 shipments had an export price of $139 million when they left the Indonesian shores. After reaching India, they were allegedly registered as having an import price of $215 million, a 52 per cent increase.
According to customs records examined by FT, since July 2021 the Adani Group paid a total of $4.8 billion to three companies for coal sourced at substantial premiums to market prices.
The three overseas intermediaries based in Taiwan, Dubai, and Singapore were used to import $5 billion worth of coal. The companies received a “black premium” that was “at times more than double the market price”, as per the report.
On Friday, shares of flagship company Adani Enterprises fell around 3 per cent to hit a low of Rs 2,422 on the NSE. On a year-to-date basis, the stock has plunged over 35 per cent.
Adani Ports & SEZ shares fell over 1 per cent, Adani Wilmar slipped nearly 1 per cent, Adani Power declined over 1 per cent, and Adani Green Energy also lost around 1 per cent.
Adani Group has not yet responded to the allegations. Last week, the conglomerate issued a statement saying, “There is a renewed attempt by the Financial Times and its collaborators to rehash old and baseless allegations to tarnish the name and standing of the Adani Group. This is part of their extended campaign to advance vested interests under the guise of public interest.”
“Continuing their relentless campaign, the next attack is being fronted by Dan McCrum of the Financial Times, who jointly with the OCCRP put out a false narrative against the Adani Group on 31 August 2023,” the statement added.