An investigation by The Guardian has thrown light on how the Adani Group, helmed by its CEO Gautam Adani, allegedly channelled Indian taxpayers’ money to the tune of Rs 15 billion to a shell company owned by a Mauritius-based trust. The trust in question is reportedly controlled by Gautam Adani’s elder brother Vinod Adani.

The publication on Monday carried a copy of the Directorate of Revenue Intelligence (DRI) investigation report, dated May 15, 2014, that alleges that the Adani Group inflated invoices for an electricity project to move out money to offshore bank accounts.

“MEGTPCL (M/S Maharashtra Eastern Grid Power Transmission Company Limited), being a wholly owned subsidiary of Adani Enterprises Limited, the listed flagship company of the Adani Group, through PMC appears to have made extra remittances to the extent of the inflated amounts to the tune of nearly Rs 1493,84,72,484 which appears to have been siphoned off abroad to and for the benefit of their related party M/s Electrogen Infra FZE, UAE, in the guise of import remittances by resorting to gross overvaluation of the imported goods,” the DRI report details.

PMC Projects is also alleged to be a subsidiary of the Adani Enterprises. The PMC further subcontracted the work to another company in Dubai, according to the report. Electrogen is ultimately controlled by the Mauritius-based trust allegedly chaired by Vinod Adani. Dubai-based Electrogen had several ex-Adani Group employees on its payroll, it has also come to light.

In 2010, MEGPTCL was reportedly granted a licence to develop two electricity transmission networks in Maharashtra, the report highlights. The equipment sourced to put together the plant was overpriced by almost 400 per cent of the original value. The proceeds of the alleged ill-gotten wealth were ultimately routed to a company allegedly owned by Mauritius-based Asankhya Resources Family Trust, which reportedly has Gautam Adani’s elder brother Vinod Adani as its owner.

The DRI investigation also throws light on the multi-country channel used by Adani Enterprises to route the money, from India through South Korea and Dubai, before being routed to Mauritius.

The DRI claims that “Electrogen made about 26 orders from South Korea-based Hyundai Heavy Industries and sold them onto PMC for an average mark-up of more than 400%,” according to the newspaper.

The DRI investigations against the alleged wrongdoing were first reported by Economic and Political Weekly (EPW) on May 14, 2014.

However, the Guardian article noted that it was for the first time that a copy of the DRI investigation had been made public. It is also noted that the allegations had been passed to the Enforcement Directorate (ED). The case is in the court and a decision is expected soon, it is being reported.

The Guardian report can be accessed through this link:

Adani mining giant faces financial fraud claims as it bids for Australian coal loan

Parts of the 97-page DRI document, first accessed by The Guardian, can be accessed through this link.

The Adani Group has reportedly denied allegations of financial wrongdoing, adding that its “transactions are always conducted within the framework of extant regulatory guidelines and provisions.”