Adani Group managing director held for tax evasion

NEW DELHI/PANAJI - The managing director of the Ahmedabad-based Adani Group was arrested Saturday for allegedly evading customs duty of Rs.1.07 crore. Ten customs and central excise officials from Goa are also being probed in the case, the Central Bureau of Investigation (CBI) said.

“We arrested Rajesh Adani from Ahmedabad for causing a loss to the exchequer of Rs.1.07 crore,” a CBI spokesman said.

He was arrested after the CBI’s Goa branch registered a case against him and 10 officials of Goa customs and central excise for cheating and criminal conspiracy. The case was registered April 25, 2008.

Speaking to reporters in Panaji, Superintendent of Police S.S. Gavli said Adani would be brought to Goa for questioning Sunday.

“Rajesh Adani was arrested in Ahmedabad at 7 a.m. today (Saturday). He is likely to be brought tomorrow (Sunday) as they are completing few formalities. We placed him under arrest because we wanted his custodial interrogation,” Gavli said.

According to the CBI, 10 customs and excise officials conspired with private parties and by abusing their official positions facilitated the import of two consignments of naphta and furnace oil in 2005-06. They undervalued the consignments, causing a loss of Rs.1.07 crore to the exchequer.

“Along with the 10 customs officials, a case has also been booked against two firms - Ganesh Benzoplast Ltd, Mumbai, which is a clearing house, and J.A.F. Leitao and Sons based in Goa, besides Rajesh Adani,” Gavli said.

He said the scam had spanned 2006 and 2007 and the case was booked in 2008.

“After conducting detailed investigations, we finally decided to make the arrests,” Gavli said.

Started in 1988, the Adani group has interests in sectors like ports, power, real estate, agro, oil and gas. According to the company’s website, on March 31 last year, the Adani group had touched revenues of Rs.262 billion.

–Indo Asian News Service