Supreme Court Revives DRI’s Letters Rogatory In Probe Against Adani Enterprises

The Supreme Court of India today ordered a stay against the Bombay High Court judgment that quashed the letters rogatory issued by the Directorate of Revenue Intelligence to various countries seeking information on coal imports by Adani Enterprises Ltd.

Letters rogatory are letters of formal request issued by a country’s court to another while seeking information related to a probe.

The stay order revives the letters rogatory issued against Adani Enterprises in the probe on alleged overstating of the value of coal imported in India—involving as many as 231 consignments between 2010 and 2016—to avail higher power tariff compensation.

The Bombay High Court had struck down the letters rogatory on procedural grounds while making it clear that it hasn’t gone into their merits and demerits.

The DRI was investigating against Adani Enterprises for offences under the Customs Act which relates to knowingly making any false declaration, statement or document in the transaction of any business.

Adani Enterprises had argued in the Bombay High Court that the investigation by the DRI was “illegally commenced” and, therefore, there was no validity behind the letters issued against the company. It had argued that there was no registration of any first information report—mandatory for an investigation to commence—which covers even cases falling under the Customs Act.

The government had earlier argued that the Customs Department was well within its right to approach other countries and seek information on evidence or examine any witness which it believes can be helpful in its investigation.

An apex court bench headed by Chief Justice of India SA Bobde is likely to hear the case next on Jan. 24, 2020.