DRI 2014.pdf

of 111
D I R E C T O R A T E O F R E V E N U E I N T E L L I G E N C E
13, SIR VITHALDAS THAKERSEY MARG,
OPP PATKAR HALL, NEW MARINE LINES,
MUMBAI 400 020
PH: 022-22010115, 022-22010116
----------------------------------------------------------------------------------------------------------
F.No.DRI/MZU/CI-224/(APML/APRL)/2013 Date :15-05-2014
Subject: Gross over-valuation in the import of goods by M/s Adani
Power Maharashtra Limited (APML) and M/s Adani Power
Rajasthan Limited (APRL), subsidiary companies of Adani
Power Limited in connivance with intermediary invoicing
entity M/s Electrogen Infra FZE, UAE - Show Cause Notice
under Section 124 of the Customs Act, 1962 – reg.
1.1 Intelligence developed by Mumbai Zonal Unit (MZU) of Directorate
of Revenue Intelligence (DRI) indicated that various entities of Adani group
were indulging in gross over-valuation of imported goods (zero or low duty
rated) to siphon off money abroad from public listed companies. The modus-
operandi followed was that for power sector imports (power generation - zero %
duty and power transmission - 5% Basic custom duty), while the goods from
various vendors (mostly South Korean and Chinese) are shipped directly to
India, documents are routed through an intermediary entity created by them in
the UAE i.e M/s Electrogen Infra FZE, UAE, who raised invoices with inflated
value (inflating several times the value of original invoices of OEMs) on the
Indian companies, against which money is remitted to Dubai. The activities of
M/s Electrogen Infra FZE, UAE are apparently controlled and managed by the
Adani Group through one or more of its representative firms and/or personnel.
Intelligence further suggested that from UAE, while the actual invoice value is
remitted to respective OEMs, the extra amount is routed to the Mauritius
account of the parent company of Electrogen Infra FZE i.e M/s Electrogen Infra
Holding Pvt. Ltd.
1.2 On the basis of the said intelligence, enquiries were initiated into
import of goods on the basis of invoices raised by M/s Electrogen Infra FZE,
UAE (here-in-after referred to as ‘EIF’ also) which were found to have been
imported and cleared, inter-alia, in the name of Adani Group companies
engaged in the power sector business viz. M/s Adani Power Maharashtra
Limited (here-in-after referred to as ‘APML’) and M/s Adani Power Rajasthan

of 111
Limited (here-in-after referred to as ‘APRL’ ), both having their registered offices
in Ahmedabad. Both these companies APML (IEC: 0807015229) and APRL
(IEC: 0809029201) are subsidiaries of Adani Power Limited which itself is a
subsidiary of Adani Enterprises Limited (AEL), the flagship company of the
Adani Group.
1.3 APML have set up a coal based thermal power plant of 2 x 660 MW
(Unit No. 4 & 5) at A-1 MIDC, Tiroda, District-Gondia, in Maharashtra. For
setting up the project, they entered into a supply contract dated 05-11-2009
with M/s Sichuan Machinery and Equipments FZE (the erstwhile name of EIF
and here-in-after referred to ‘SME’ also) for supply for equipments and
machinery. This supply agreement was for USD 736 Million covering Boiler-
Turbine-Generator (BTG) supply.
1.4 APRL have also set up a coal based thermal power plant of 2 x 660
MW at Village Kawai in District Baran of Rajasthan. For setting up the project,
they also entered into a supply contract dated 02-04-2010 with EIF for supply
of equipments and machinery. This supply agreement was for USD 790 Million
covering BTG supply.
1.5 APML and APRL registered the respective supply contract for
assessment under the customs tariff heading 98.01 seeking benefit of
concessional rate of duty (NIL) under the Project Import Regulations, 1986.
Imports made by APRL and APML, on the basis of invoices raised by EIF, as
project imports are relevant to the present investigation regarding their over-
valuation. All the imports have been cleared at ‘NIL’ rate of duty, with majority
of the import clearances having been effected through Nhava Sheva Port and
Mundra Port by APML and APRL respectively.
2.0 DOCUMENTS FROM BANKS
During enquiries, it was gathered that documents relating to
transactions involving import of goods (on invoices raised by EIF) by one or
more of the Adani Group companies in India had been negotiated by EIF
through certain Indian banks having their branches in the UAE. Accordingly,
pursuant to ascertaining the names of some of the banks, correspondence was
initiated with Axis Bank and ICICI Bank having their branches in Dubai
International Financial Centre (DIFC), Dubai as well as with Bank of Baroda,
Dubai Main Branch, Bur Dubai, through three separate letters dated 30-04-
2013 (RUD/C-1). Gist of the information/documents called for from the banks,

of 111
through the three identically worded letters addressed to the banks, is given
below -
“1. Investigations under the Customs Act, 1962 are underway in respect of goods imported
into India wherein the supplier on record is a company named M/S.ELECTROGEN INFRA FZE,
having its registered office at Sharjah, besides interalia having branch offices at Dubai and other
places. The cargo is understood to have been shipped to India from various overseas ports. It is
also understood that documents relating to transactions involving sourcing of goods by
M/S.ELECTROGEN INFRA FZE from various overseas suppliers and its onward supply/shipment
from the port of loading, in its capacity as a supplier and/or at its behest have been
faciliatated/negotiated by/through your branch. For the sake of illustration, documents typically
handled/negotiated in such a transaction (Ascertained upon scrutiny of documents forwarded by
other banks based in the middle-east towards the ongoing investigation) would interalia include
:-
(i) Copy of the invoice raised by the original supplier in the name of
M/S.ELECTROGEN INFRA FZE alongwith corresponding packing list and Bill of
lading,
(ii) Copy of the back-to-back invoice/packing list subsequently raised by
M/S.ELECTROGEN INFRA FZE on one or more Indian importers, together with the
corresponding bill of lading thereof.
2. All documents/transactions negotiated/facilitated by your bank for and on behalf of
M/S.ELECTROGEN INFRA FZE are required in connection with the ongoing investigations. The
names of few of the importers in India to whom such goods have been supplied is given below to
facilitate quick identification.
i) M/S. PMC PROJECTS (INDIA) PVT. LTD
ii) M/S. ADANI POWER RAJASTHAN LTD.
iii) M/S. ADANI POWER MAHARASHTRA LTD.
iv) M/S. ADANI ENTERPRISES LIMITED
v) M/S. ADANI HAZIRA PORT PVT. LTD
vi) M/S. ADANI RENEWABLE ENERGY LLP
3. You are required to furnish complete details of all such transactions which should
necessarily include submission of self-attested photo-copies of the following documents:-
a) Copies of invoices, packing lists & bills of lading, for both sets of transactions illustrated
at (i) & (ii) of para 1 above together with any other documents submitted/lodged with your
bank to facilitate the negotiation/transaction.
b) Copies of individual Letters of Credit covering such transactions.
c) Copies of the agreements/contracts/purchase orders, finding cross-reference in the
documents mentioned at (a) or (b). (Invoices, Packing lists, Bills of lading, Letters of Credit
etc.)
4. You are also requested to submit complete details of the nature/type of account held by
M/S.ELECTROGEN INFRA FZE with your bank, account number, date of opening of the account,
self attested-copy of the application made for opening an account/self-attested copy of the
account opening form furnished while opening the account together with self-attested legible

of 111
photo-copies of all the supporting documents submitted to the bank in support of the
application/all enclosures (self attested) to the account opening form/application form, self
attested copies of the bank account statements since inception of the account till date.
5. In case the transactions in question have been negotiated through some other middle-east
based branch of your bank, complete details thereof may be provided. You may also nominate a
responsible officer from your Corporate/Head office based in India to liase with this agency on
the above matter, whose details (Name, designation and mobile number, address) may be
communicated to this office forthwith. “
2.1 DOCUMENTS FROM AXIS BANK (First Lot)
2.1.1 Axis Bank, Mumbai had earlier provided certain documents
through their letters bearing reference no. AXIS/CO/IBD/2013-14/35 dated
18-04-2013 (RUD/D-1) and AXIS/CO/IBD/2013-14/44 dated 25-04-2013
(RUD/D-2) in response to enquiries relating to import of goods by M/s PMC
Projects (India) Private Limited, a contractor for one of the Adani Group
companies viz. M/s Maharashtra Eastern Grid Power Transmission Company
Limited (MEGPTCL) in relation to goods imported for their transmission line
project. The name of Shri Jatin Shah, as a representative of EIF, was found
consistently appearing in majority of the invoices/packing lists raised by one of
the OEMs viz. M/s Hyundai Heavy Industries Co. Ltd., South Korea on EIF
wherein goods were shipped directly to M/s PMC Projects (India) Private
Limited in India. On discreet enquiries regarding Shri Jatin Shah, whose name
was appearing in many of the OEM invoices/packing lists, as a representative
of EIF, it was gathered that he was an active member of Adani Group, visiting
Ahmedabad regularly to participate in meetings held by the Adani Group. It
was also gathered that in the past, he had worked in the capacity of ‘Finance
Controller’ for Adani Power Limited. Accordingly, summons under Section 108
of the Customs Act, 1962 bearing F.No. DRI/MZU/CI-224/2013/3928 dated
30-04-2013 (RUD/C-2) was issued seeking his appearance on 06-05-2013 with
all agreements/contracts entered into/executed by the Adani Group or its
subsidiaries with the Hyundai Group, based on specific inputs that the
Hyundai Group had in the past signed a contract with the Adani Group for 100
units of high voltage transformers.
2.1.2 M/s Adani Power Limited, vide its reply bearing Ref:
APL/DRI/Mundra/088/RR/2013 dated 06-05-2013 (RUD/D-3), while
acknowledging receipt of the summons issued to Shri Jatin Shah, informed in
the letter that Shri Jatin Shah was no longer working with them since 2009.
They further informed that Adani Power Limited or its subsidiaries had not
entered into any agreements/contracts with the Hyundai Group. In view of the
information provided by M/s Adani Power Limited, it was confirmed that Shri

of 111
Jatin Shah of EIF, at some point of time in the past, was an employee of Adani
Power Limited.
2.1.3 Shri Rajiv Rustogi, signatory to the aforesaid letter dated 06-05-
2013, was summoned under Section 108 of the Customs Act, 1962 through
summons issued under F.No. DRI/MZU/CI-224/2013/4112 dated 06-05-2013
(RUD/C-3) to produce contracts relating to purchase/import of transformers
with service records of Shri Jatin Shah (designation & period when employed),
date of relieving and copy of relieving letter/resignation letter.
2.1.4 Shri Rajiv Rustogi, General Manager (Accounts), through his reply
bearing Ref.APL/DRI/Mundra/xxx/RR/2013 dated 09-05-2013 (RUD/D-4)
responded stating that due to personal reasons, he was unable to remain
present in person. He provided certain information and documents under cover
of the said letter. On import of the transformers by M/s Adani Power Limited or
its subsidiary companies from the Hyundai Group, South Korea, he declared
on behalf of the company that Adani Power Limited or its subsidiaries had not
entered into any agreement/contract for transformers with Hyundai Group,
South Korea.
2.1.5 From the employment details of Shri Jatin Shah, as provided in
the above said letter, it appeared that he worked for M/s Adani Enterprises
Limited as Manager (Finance) in 2002, for Adani Port Limited as Senior
Manager (Finance) and Deputy General Manager between 2003 and 2006 and
finally as a General Manager with Adani Power Limited in 2008 before
resigning in August, 2009. As per the documents submitted, it appeared that
Shri Jatin Shah submitted his resignation on 19-08-2009, which was accepted
by the company M/s Adani Power Limited on the same day while
communicating to him that he would stand relieved from the services of the
company with effect from 31-08-2009.
2.1.6 It, therefore, appears that M/s Jatin Shah, representative of the
UAE based company EIF had, in the past, been closely associated with the
Adani Group by way of being employed in different capacities in various Adani
group companies for eight consecutive years from 2002 through August, 2009.
2.2 DOCUMENTS FROM ICICI BANK LTD (First Lot)
2.2.1 Since there was no response to the letter dated 30-04-2013 (para
2.0 above) written to ICICI Bank, a reminder was sent on 10-06-2013 (RUD-
C/4).
2.2.2 The ICICI Bank’s Corporate office in Mumbai forwarded certain
documents under cover of their letter bearing reference no. NIL dated 19-06-

of 111
2013 (RUD/D-5) as received by them from their DIFC Branch, in Dubai. The
documents, inter-alia, included details of the account held by EIF with their
DIFC Branch in Dubai; KYC (Know Your Customer) verification documents;
account opening form; details of inward and outward remittances into and
from the account of EIF; and certain import/export bills, as described in the
letter dated 10-06-2013 of the ICICI Bank’s DIFC, Dubai branch(RUD/D-6).
Documents found relevant to the investigation are discussed in the following
paras.
2.2.3 As per letter dated 26th April 2012 (RUD/D-7), written by EIF
addressed to the ICICI Bank Ltd., DIFC, Dubai Branch, informing the bank
about the shareholding pattern of EIF. Relevant contents of the letter,
apparently signed by Shri Jatin Shah, are reproduced below -
“Please find below the shareholding pattern of Electrogen Infra FZE:
i) Electrogen Infra FZE is 100% owned by Electrogen Infra Holding Pvt. Ltd.
ii) Electrogen Infra Holding Pvt. Ltd. is 100% owned by Asankhya Resources
Pvt. Ltd.
iii) Asankhya Resources Pvt. Ltd. is owned by Eagle Holding Ltd., which is a
nominee shareholder in Asankhya Resources Family Trust.
iv) In Asankhya Resources Family Trust, Mr. Vinod Shantilal Adani is the
settler.
From the above information given to the Bank by EIF, it appears that Shri
Vinod Shantilal Adani had a direct control over the activities of EIF through the
Asankhya Resources Family Trust.
2.2.4 Scrutiny of Audited Financial Statements (stated in US Dollars)
including Directors’ Report of ElectroGen Infra Holding Pvt. Ltd. (here-in-after
referred to as ‘EIH’ ) for the year ended 31-03-2011 (RUD/D-8), which
containparallel data for the year ended 31st March 2010, revealed as under.
i) EIH was incorporated in Mauritius on 16 July 2009 as a private
company.
ii) In the Corporate Data, Shri Vinod Shantilal Shah has been
listed as a Director of EIH with the date of his appointment as
Director shown as 12th January 2010. Other directors with their
dates of appointment and resignations are indicated as under :-
Name Appointed Resigned
Giandeo Reemul 16 July 2009 08-March 2011

of 111
Navind Beeharry 16 July 2009 08 March 2011
Nasser Ali Shaban Ahli 16 July 2009 01 October 2009
Chang Chung-Ling 01 October 2009 12 January 2010
Vinod Shantilal Shah 12 January 2010 N/A
Note: Name of Nasser Ali Shaban Ahli, who was appointed
Director from the date of incorporation of the company
and who resigned few months i.e on 01-10-2009 before
Vinod Shantilal Shah became a Directoron 12-01-2010,is
noteworthy.He was the initial subscriber on 16-07-2009
i.e when the company was incorporated in Mauritius to
the whole of equity capital of USD 1000 divided into 1000
shares of USD one each of EIH and was thus the sole
share-holder of the company. These shares were thereafter
transferred to Shri Vinod Shantilal Shah on 12-01-2010,
after Shri Vinod Shantilal Shah became the sole share-
holder and owner of EIH. Nasser Ali Shaban Ahli was also
the initial subscriber to equity capital of AED 1,50,000
divided into one share of AED 1,50,000 of M/s Sichuan
Machinery & Equipments FZE (name changed to EIF on
04-01-2010) on 07-07-2009, when the company was
registered in the UAE.The whole of this equity was
transferred and sold to EIH on 29-03-2010 after which EIF
became wholly owned subsidiary of EIH.
iii) The Directors’ Report of EIH appears to have been signed on
30-05-2011 by Shri Vinod Shantilal Shah by order of the
Board of Director of EIH. Balance Sheet of EIH as on
31stMarch 2011 and its profit and loss account for the year
ended 31st March 2011 was also approved on 30-05-2011 by
Shri Vinod Shantilal Shah on behalf of the Board of
Directors of EIH. Incidentally, Shri Vinod Shantilal Shah was
the only Director of EIH as on 31-03-2011 as is clear from
sub-para (ii) above.
iv) As on 31st March 2010, EIH had paid-up share capital of
USD 1000 divided into 1000 shares of one USD each which
was increased to USD 1,00,000 divided into one lakh shares
of one USD each by issue of 99,000 shares of one USD each
during the Financial Year 2010-11.

of 111
v) EIH had an investment of USD 40,872 as on 31-03-2010 in
shares of an unquoted company which went upto USD
14,81,390 as on 31-03-2011. This investment was in EIF,
which was its wholly owned subsidiary.
vi) EIH received dividend income of USD 53,850,954 during the
Financial Year 2010-11.Since EIH had investment only in
EIF, which was its wholly owned subsidiary, this dividend
income was also received from EIF only.
2.2.5 Scrutiny of Financial Statements of EIF for the year ended 31st
March 2011 (RUD/D-9), which included parallel data for the year ended 31st
March 2010, revealed as under :-
i) EIF was a Free Zone Establishment with limited liability
registered in Sharjah Airport International Free (SAIF) Zone,
Sharjah. It was incoroporated on 08-July-2009.
ii) EIF had subscribed, issued and paid-up share capital of AED
1,50,000 divided into one share of AED 1,50,000. The
subscribed issued and paid-up share capital was raised during
the financial year 2010-11 to AED 54,00,000 divided into 36
shares of AED 1,50,000 each.
iii) In the Notes to the Financial Statements, in Note No. 7, it is
mentioned that Share Certificate for share capital as on 31st
March 2010 and 31st March 2011 was in the name of EIH. In
the Manager’s Report also, it is mentioned that as on 31st
March 2011, the entire share capital of AED 54,00,000 divided
into 36 shares was held by EIH, Mauritius.
iv) The Manager’s Report as on 31st March 2011 was signed by
Shri Jatin Shah. Financial Statements were also signed by him
as Manager of EIF.
2.2.6 Scrutiny of the application for opening of the account revealed that
it was made on 14-09-2011 signed by two persons, namely; Shri Jatin Shah,
an ex-employee of the Adani Group and Shri Mehul Jani, both apparently
Indian nationals. As per the business details provided to the Bank while
opening of the account, the applicants had declared nature of their business to
be ‘General Trading’ and the country where major business is carried out as
‘India’. Other information declared in the form was annual turnover of AED 512

of 111
Million. The purpose of opening the relationship was declared as ‘Loans’
(RUD/D-10).
2.2.7 In the Signature Card, the above named two individuals had
declared themselves as Authorised Signatory 1 and Authorised Signatory 2,
respectively (RUD/D-11). Scrutiny of Annexure A to ICICI Bank’s application
form (RUD/D-12), which deals with information relating to Directors, Major
Shareholders, Partner etc., the name of Shri Jatin Shah was found mentioned
as a Director, while the name of Shri Mehul Jani was found mentioned as an
Authorised Signatory. From the permanent residential addresses declared by
the two individuals representing EIF, it appears that they were residents of
Ahmedabad and Vadodara (earlier Baroda), respectively.
2.2.8 Scrutiny of a two-page document titled ‘Addendum to
Memorandum and Articles of Association of EIF. Scrutiny of the Addendum
reveals that SAIF Zone authorities have acknowledged the amendment made on
29-03-2010 to the Memorandum and Articles of Association dated 07-07-2009
of EIF. As per the amendment, Shri Nasser Ali Shaban Ahli, a UAE national
holding Passport no. A1811119, who was the owner of EIF’s entire paid-up
share capital of one share of AED1,50,000 only sold, transferred and assigned
fully and wholly, the said one share of EIF to EIH. The Addendum is signed by
Shri Vinod Shantilal Shah as representative of EIH. After execution of the
Addendum, EIH has been described as the ‘owner’ substituting Mr. Nasser Ali
Shaban Ahli. With this sale, transfer and assignment, EIF became wholly
owned subsidiary of EIH with effect from 29-03-2010 (RUD/D-13). This was
the second amendment to the Memorandum and Articles Association dated 07-
07-2009 of EIF. The first amendment was made on 04-01-2010 to change
name of the company to EIF (para 2.3.4 below) and the third amendment was
made on 17-06-2010 to increase share capital. (para 2.4.12 below)
2.2.9 As per copy of ‘Share Certificate No. 4107’ dated 21-06-2010
issued by Government of Sharjah, SAIF Zone, it is certified that EIH,
incorporated in the Republic of Mauritius, is a registered holder of 36 shares of
AED 54,00,0000 of EIF which is stated to be a limited liability establishment
incorporated and licensed at SAIF-Zone with paid-up capital of Dhs 54,00,000
divided into 36 shares with a value of Dhs 1,50,000 each (RUD/D-14).
2.2.10 As per copy of Global Business Licence No. C211017320 dated 21-
01-2011 granted by the Government of the Republic of Mauritius to EIH, it is,
inter-alia, mentioned that the company shall not offer its shares or otherwise
raise capital from the public. (RUD/D-15)

of 111
2.2.11 Copy of Certificate of Incorporation on Change of Name issued on
08-01-2010 by the Registrar of Companies, Republic of Mauritius certifies that
the name of M/s Sichuan Machinery & Equipment Import & Export Co. Ltd
have by special resolution changed its name and is now incorporated under the
name of M/s ElectroGen Infra Holding Pvt. Ltd (RUD/D-16).
2.3 DOCUMENTS FROM BANK OF BARODA
2.3.1 Bank of Baroda, Dubai Main Branch vide their letter Ref. No. CE:
Compliance: 1612/2013 dated 05-11-2013 (RUD/D-17), referring to DRI’s
letter bearing F.No. DRI/MZU/CI-224/2013/3928 dated 30-04-2013 therein,
forwarded documents pertaining to EIF’s transactions to their corporate office
located at Bandra-Kurla Complex, Mumbai, which were retrieved by the officers
of DRI on 18-11-2013.
2.3.2 These documents included, inter-alia, account opening form with
related documents and statement of account in respect of the USD account
bearing no. 90010200008259 held by EIF with BOB, Bur Dubai Branch. The
above account was initially opened on 06-07-2009 in the name of Sichuan
Machinery and Equipments FZE. As per copy of Memorandum and Articles of
Association made on 07-07-2009 at SAIF Zone, UAE, this company was
incorporated with Shri Nasser Ali Shaban Ahli, a UAE national, as the ‘owner’
holding the entire authorised and paid-up capital of one share valued at AED
1,50,000 (RUD/D-18). The Bank was authorised to honour cheques/bills of
exchange and promissory notes drawn, accepted or made on behalf of the
company singly byShri Nasser Ali Shaban Ahli. As per the copy of the Licence
Certificate issued by SAIF Zone authorities on 07-07-2009, (RUD/D- 18A) the
company was licensed for ‘general trading’.
2.3.3 Perusal of copy of document titled ‘Board Resolution of M/s
Sichuan Machinery & Equipments FZE dated 19th November 2009 (RUD/D-19)
reveals that the purpose of the resolution was to open and operate accounts
with any bank in the UAE in the name of M/s Sichuan Machinery &
Equipments FZE, and to avail all types of banking facilities in the company’s
name. It was resolved, inter-alia, to add the name of Shri Jatin Shah, holder of
Indian Passport No. H3015351, as an the authorized signatory in the bank
accounts of M/s Sichuan Machinery & Equipments FZE;to authorise Shri Jatin
Shah to open, operate & close banking accounts with any bank of the UAE and
authorized to sign singly on Bank Mandate documents relating to use of
electronic distribution channels, undertakings, indemnity/security
documents/guarantees/agreements and any Finance Documents on behalf of
the Company excepting cheques and cheque book request forms which could

of 111
only be signed by Mr. Naseer Ali Shaban Ali singly. Accordingly, specimen
signature card with specimen signature of Shri Jatin Shah, stating that he
could operate the account singly, was submitted to the bank on 21-11-2009
(RUD/D-20).
2.3.4 As per copy of Addendum to the Memorandum and Articles of
Association dated 07-07-2009 of EIF, an amendment made on 04-01-2010 to
the Memorandum and Articles of Association was acknowledged by SAIF Zone
authorities (RUD/D-21). As per the amendment, name of the company was
changed from Sichuan Machinery & Equipments FZE to EIF with same owner
i.e. Shri Nasser Ali Shaban Ahli. This Addendum (amendment) to the
Memorandum and Articles of Association dated 07-07-2009 of EIF is
immediately prior to the second Addendum as discussed in para 2.2.8 above.
Accordingly, SAIF Zone authorities also changed the name of the Licence
holder in the Licence Certificate no. 01-01-07314 on 14th January 2010
(RUD/D-22). EIF also intimated change of name to BOB, Bur Dubai vide its
letter dated 04-02-2010 (RUD/D-23).
2.3.5 From the facts narrated above, it is evident that day to day work
relating to Sichuan Machinery & Equipments FZE was being handled by Shri
Jatin Shah, (an employee of Adani Group till 31-08-2009), since November
2009 even before the company was taken over on 29-03-2010 by Shri Vinod
Shantilal Shah through EIH.
2.4 KYC DOCUMENTS FROM AXIS BANK (Second Lot)
2.4.1 AXIS Bank, DIFC Branch, Dubai further submitted certain
documents vide their letter bearing Ref.No. AXIS/DICF/1229/2013-14 dated
18th December 2013 (RUD-D/24). It was, inter-alia, conveyed by the bank in
its letter that EIF held a current account bearing no. 912020200000514
opened on 20-07-2010 and that EIH was the parent company of EIF. The
documents forwarded by the bank included copies of account opening form
alongwith supporting KYC documents submitted by EIF; copies of the bank
account statement since inception of the account till 12-12-2013 and copy of
the shareholding pattern of EIF. Documents relevant to the investigation are
discussed in the following paras.
2.4.2 As per Section I for stating Client Details, Analysis &Consent
Form, EIF have declared the name of Bank of Baroda, Bur Dubai, Main Branch
as their principal bankers. In the information provided regarding accounts held
with other banks, they have declared the names of Bank of Baroda and

of 111
Standard Chartered Bank. With regard to the declaration of their business
activity, it was declared that it was a new company and incorporated with the
object of trading in power equipment. Regarding the declaration on source of
funds, EIF has declared that their promoter was EIH, who would be
bringing equity as and when required from their own sources. On the
reason for applying for opening of the account, they have declared “asset
handling”. The application appears to have been signed by Shri Jatin Shah on
10-07-2010 (RUD/D-25).
2.4.3 As per Section II for details of Authorised
Signatory/Director/Beneficial Owner, the name and other personal details of
Shri Vinod Shah and Shri Jatin Shah were found declared. While employment
details in terms of occupation and corporate title were not filled in for Shri
Vinod Shah, Shri Jatin Shah’s occupation was declared as ‘service’ and his
corporate title as ‘Manager’ (RUD/D-26).
2.4.4 As per resolution dated 10-07-2010 of the Board of Directors of
EIF, available in the records of the bank, it was resolved that a bank account
be opened in the name of EIF and Shri Vinod S Shah &Shri Jatin C Shah be
designated as authorized signatories to operate the account and sign
documents without any limit (RUD/D-27).
2.4.5 From letter dated 10-07-2010 of EIF addressed to Axis Bank, it is
certified by Shri Jatin Shah as Chief Financial Officer of EIF that Shri Vinod
Shantilal Shah, Shri Moreshwar V. Rabade and Shri Jatin C Shah were
Directors of EIF (RUD/D-28).
2.4.6 The documents included a copy of the Licence Certificate No. 01-
01-07314 dated 14-01-2010 issued to EIF by SAIF Zone authorities, which was
also found in the records of the documents pertaining to Bank of Baroda, Bur
Dubai (para 2.3.4 above)(RUD/D-29).
2.4.7 As per copy of Resolution dated 19-05-2011 passed by the Board
of Directors of EIF, it was resolved, inter-alia, that Shri Vinod Shah
wasauthorized to operate the account of EIF singly without any limit and that
any two of the three persons viz. Shri Jatin Shah, Shri Mehul Jani and Shri
Mitesh Jani, could operate the account jointly without any limit (RUD/D-30).
2.4.8 As per letter dated 14-10-2012 submitted by EIF to Axis Bank,
Shri Jatin Shah and Shri Moreshwar V Rabade had been certified as Directors
of EIF (RUD/D-31).

of 111
2.4.9 In letter dated 23-10-2012 addressed to the Bank, EIF informed
the Bank about the resignation of Vinod Shantilal Shah as a Director of their
holding company-EIH w.e.f. 31-05-2011(RUD/D-32).
2.4.10 In another letter dated 23-10-2012 addressed to the Bank, EIF has
confirmed the names of Shri Jatin Shah, Shri Mehul Jani and Shri Mitesh Jani
as the authorized signatories of EIF and the names of its directors as Shri Jatin
Shah and Shri Moreshwar Rabade. This letter also reitereated that 100% of the
equity capital of EIF was held by EIH (RUD/D-33).
2.4.11 Copies of the amended License Certificates issued by SAIF Zone
authorities as of 07-08-2012 and 19-06-2013 show EIF as a firm engaged in
“general trading” activity & owned by EIH with Shri Jatin Shah as the manager
(RUD/D-34). EIF was also holding a Trading Licence issued by Jumeirah Lake
Tower authorities bearing Licence No. JLT-65859, as a Branch office, having
address Unit N. 2707, Jumeirah Business Center 5 Plot No.W1, Jumeirah
Lakes Towers, Dubai, United Arab Emirates (RUD/D-35). The copy of the said
Trading Licence shows Shri Jatin Shah as the Manager and activity
undertaken by the company as Trading in Equipment related to power lines,
ports and transmission lines.
2.4.12 The documents include copy of the Addendum to the
Memorandum & Articles of Association dated 07-07-2009 of EIF. Vide this
addendum, SAIF Zone authorities acknowledged amendment made on 17-06-
2010 to the Memorandum & Articles of Association of EIF for increasing the
share capital from AED 1,50,000 to AED 54,00,000 (RUD/D-36). The
Addendum was signed by Shri Vinod Shantilal Shah as a representative of EIH.
This is the third Addendum to the Memorandum & Articles of Association of
EIF dated 07-07-2009, the other two being dated 04-01-2010 for change of
name and 29-03-2010 for transfer of ownership as discused at para 2.3.4 and
2.2.8 above respectively.
2.4.13 The documents include a copy of Register of Members of EIH
certified on 25-01-2010 by Shri Giandeo Reemul, for and on behalf of Trustlink
International Limited, Company Secretary (RUD/D-37). A scanned image of the
Register of Members is reproduced below for ease of appreciation -

of 111
2.4.14 Perusal of the Register of Members shows that on 16-07-2009 i.e
the date when EIH was incorporated in Mauritius, 1000 shares of USD 1 each
(which was the entire authorised and paid-up capital of EIH as on 16-07-2009)
with distinctive numbers from 0001 to 1000 was allotted to Nasser Ali Shaban
Ahli. The same shares were transferred on 01-10-2009 from Nasser Ali Shaban
Ahli to Chang Chung Ling and further transferred to Shri Vinod Shantilal Shah
on 12-01-2010.
2.5 Documents from ICICI Bank Limited (2nd Lot)
2.5.1 In response to letter dated 27-03-2014, ICICI Bank, Singapore
through letter dated 02-04-2014 (RUD/D-38) conveyed that they had provided
Advance Payment Guarantee (APG) facility to EIF; that EIF did not accept and
that the facility was, therefore, not availed by EIF. The Bank also conveyed that
no documents had been lodged by EIF with the Singapore Branch. Therefore,
the issue was taken up and pursued with officials of ICICI Bank’s corporate
office at Bandra Kurla Complex, Mumbai. ICICI Bank, vide their letter dated
07-04-2014 (RUD-D/39), forwarded certain documents, which appeared to be
documents submitted by EIF to the Bank authorities while applying for the
APG facility. Documents relevant to this investigation are discussed in the
following paras.
2.5.2 From the documents forwarded by the Bank, it appeared that while
applying for APG facility, EIF had provided on 09-04-2010 a background of
itself in a document titled ‘Brief Background’ (RUD-D/40), wherein they had
stated that the company was established with SAIF Zone in July 2009 in the
name and style of Sichuan Machinery and Equipments FZE and with effect
from 04-01-2010, the name was changed to EIF.
2.5.3 In the said documents, EIF also disclosed to the bank on 09-04-
2010 that it is a wholly owned subsidiary of EIH, registered in Mauritius,owned
by Shri Vinod Shantilal Shah. The names of Shri Vinod S Shah, Shri
M.V.Rabade and Shri Jatin Shah have been mentioned as Board Members of
EIF.
2.5.4 ICICI Bank further submitted certain documents vide their letter
dated 16-04-2014 (RUD/D-41), which included a document titled ‘Details of
Director’ provided by EIF to them at their specific insistence (RUD/D-42). This
document provides names and other particulars of Shri Jatin Champaklal

of 111
Shah and Shri Moreshwar Vasant Rabade, as Directors of EIF.Moreshwar
Vasant Rabade appears to be full name of ‘M.V.Rabade’ listed as one of
members of the Board of Director of EIF in the document titled ‘Brief
Background’ referred to at the foregoing paragraph 2.5.3 above. The documents
also include a certificate dated 01-06-2010 by Shri Jatin Shah as Chief
Financial Officer of EIF certifying that as on that date, Shri Vinod Shantilal
Shah, Shri Moreshwar V.Rabade and Shri Jatin C. Shah were members of the
Board of Directors of EIF (RUD/D-43).
3.0 Visit to the offices of Adani Group companies in Ahmedabad
and summons issued to various persons of the group including those
connected with EIF.
3.1 The supplier on record for many of the Adani Group companies
including APML and APRL was the UAE based firm EIF, which appear related
to the Adani Group as brought out elsewhere in this notice. Efforts were,
therefore, made to obtain documents covering transactions between EIF and
overseas based OEMs/actual suppliers, in the case of shipments where the
goods were eventually supplied to one or more of the Adani Group entities. The
officers of MZU visited offices of the following group entities of the Adani Group
in Ahmedabad office on or about 25-09-2013, in an attempt to procure
OEM/actual supplier documentation with M/s Electrogen Infra FZE, UAE
under the reasonable belief that such documents would be stored in the said
offices. Shri Nayan Rao, Vice President, Corporate Affairs, of the Adani Group
voluntarily came forward and agreed to co-operate with the officers during the
course of their visit by supplying the documents required by DRI. During the
course of their visit, the officers visited the following premises accompanied by
Shri Nayan Rao, Vice President of the Adani Group and directed him to
produce specific documents required by them in exercise of the power
conferred by Section 107 of the Customs Act, 1962:-
i) M/s Adani Power Limited, Achalraj Building, Ahmedabad
ii) M/s Adani Enterprises, Adani House
iii) M/s Adani Enterprises, Shikhar Building
iv) Adani Group’s server room, Fortune House.
3.2 Certain documents/electronic data as specified in the visit report
dated 25-09-2013 (RUD/C-8) were handed over by Shri Nayan Rao, Vice
President, in co-ordination and consultation with concerned officials at the
above offices, to the officers of DRI during the course of their visit, in response
to the requisition under Section 107 of the Customs Act, 1962. However,

of 111
documents pertaining to transactions between M/s Electrogen Infra FZE and
one or more overseas based OEMs/actual suppliers and other entities, in the
form of OEM/actual supplier invoices and/or copies of agreements/contracts
between the OEM and M/s Electrogen Infra FZE, UAE were not produced on
the ground of non-availability.
3.3 Summons bearing F.No. DRI/MZU/C.I.-224/2013 (RUD/C-2)
under Section 108 of the Customs Act, 1962 was issued in the name of Shri
Jatin Shah, who is described variously as authorised signatory, Manager, Chief
Financial Officer and Director of M/s Electrogen Infra FZE, UAE, to his known
addresses, seeking his presence on 14-10-2013 to give evidence and produce
specific documents listed at Annexure A to the said summons, relevant
extracts of which are produced below:-
1. Self attested copies of all the agreements/contracts entered into with
various overseas based original equipment manufacturers/entities/firms
for sourcing of goods of foreign origin from them for eventual supply/sale
to M/s PMC Projects (I) Pvt. Ltd, India and/or one or more firms of the
Adani Group based in India.
2. Self attested copies of the invoices raised on your firm (M/s Electrogen
Infra FZE), by overseas firms/entities in respect of goods supplied/to be
supplied to M/s PMC Projects (I) Pvt. Ltd, India and/or one or more firms
of the Adani group based in India.
3. Details of the payments made to various foreign firms/entities against
procurements from them invoice-wise in respect of goods eventually
supplied to M/s PMC Projects (I) Pvt. Ltd, India and/or one or more firms
of the Adani group based in India
4. Name and address of the bank and branch through which
remittances/payments referred to at sr. no. 3 were made.
3.4 M/s Electrogen Infra FZE, UAE, vide a letter bearing reference no.
NIL dated 11-10-2013 (RUD/D-44) forwarded by FAX, responded in
acknowledgement of the summons stating that Shri Jatin Shah was on his
annual leave and they would revert on his return.
3.5 Another summons was issued under F.No. DRI/MZU/C.I.-
224/2013 dated 15-10-2010 (RUD/C-2), under Section 108 of the Customs
Act, 1962 seeking his presence on 28-10-2013 to give evidence and produce
specific documents as per Annexure A to the summons. Summonses under

of 111
Section 108 of the Customs Act, 1962 were also issued in the names of the two
Indian nationals Shri Mitesh Dani and Shri Mehul Jani, who appeared to be
working for M/s Electrogen Infra FZE in the UAE, seeking their appearance on
29-10-2013 and 30-10-2013 (RUD/C-6), respectively, with documents in
respect of the activities of M/s Electrogen Infra FZE, UAE.
3.6 M/s Electrogen Infra FZE, UAE, in its response dated 28-10-2013
(RUD/D-45), sent vis FAX, acknowledged the summons issued in the names of
three of its employees viz. Shri Jatin Shah, Shri Mitesh Dani and Shri Mehul
Jani. As per the letter, Shri Jatin Shah, who was claimed to be aware of the
matter, was stated to be on leave. The letter further stated that he was
expected to join duty by the end of November 2013 and that they would revert
accordingly.
3.7 Since none of the employees of M/s Electrogen Infra FZE,
responded to the summons seeking their appearances on various dates,
summons bearing F.No. DRI/MZU/CI-224/2013 under Section 108 of the
Customs Act, 1962 was issued in the name of Shri Vinod Shantilal Shah, (sole
shareholder and Director of the parent company of EIF viz. M/s Electrogen
Infra Holding Pvt. Ltd. and promoter shareholder in Adani Enterprises Limited)
to his known addresses seeking his presence on 11-11-2013 (RUD/C-7) with
specific information/documents listed at Annexure A to the said summons.
Details of the information/documents sought from him at Annexure A is
identical to the information sought from Shri Jatin Shah and other employees
of M/s Electrogen Infra FZE, in Annexure A annexed to the summonses issued
to them, relevant contents of which are as reproduced at para 3.3 above.
3.8 In response to the summons, Shri Vinod Shantilal Shah forwarded
a letter dated 11-11-2013 (RUD-D/46) by fax. In the said response, he stated
that he was neither a Director nor a Shareholder of the said company i.e M/s
Electrogen Infra FZE, at any point of time. He further stated that he was the
Director in Electrogen Infra Holdings Pvt. Ltd, Mauritius, (holding company of
M/s Electrogen Infra FZE, Sharhah) for the period from January, 2010 to May,
2011; that as a director of the parent company, he was not involved in the
business of M/s Electrogen Infra FZE, Sharjah or day to day operations
thereof. In view of these submissions, he further stated that he did not have
access to the records of M/s Electrogen Infra FZE, Sharjah and that he would
not be in a position to submit/furnish/provide the details/documents sought
by DRI. He concluded the letter by making a request to withdraw the summons
issue in his name.

of 111
3.9 In view of his response, another summons bearing F.No.
DRI/MZU/CI-225/2013 dated 11-11-2013 (RUD/C-7) was issued to Shri
Vinod Shantilal Shah seeking his presence on 18-11-2013. He was informed
that he had been empowered to sign any documents for and on behalf of M/s
Electrogen Infra FZE, as per Resolution passed the Board of Directors of M/s
Electrogen Infra FZE, UAE on or about 19-05-2011 (RUD/D-30). It was
accordingly conveyed that by virtue of the said resolved capacity as ‘Authorized
Signatory’ for Electrogen Infra FZE, he was liable to honour the summons by
appearing on the designated date and time with the information/documents
requisitioned from him.
3.10 In response thereto, Shri Vinod Shantilal Shah while
acknowledging receipt of the said summons, inter-alia, conveyed vide his letter
dated 18-11-2013 (RUD/D/47), that he had ceased to be the Director of M/s
Electrogen Infra Holding Pvt. Ltd., Mauritius (parent company of M/s
Electrogen Infra FZE ) more than two years ago; that he, therefore, was not in
possession of the documents required by DRI, and that he had noticed that the
DRI had directly written to M/s Electrogen Infra FZE also for providing
necessary documents/information. With regard to the Board Resolution, he
stated that since he did not have access to the records of M/s Electrogen Infra
FZE, he was not aware about which Resolution the DRI was referring to. He
requested for being provided with a copy of the resolution to enable him to
revert.
3.11 From his response, it was observed that Shri Vinod Shantilal Shah
did not produce any evidence to refute the documented fact that he had been
empowered to sign any documents for and on behalf of M/s Electrogen Infra
FZE as per Resolution passed the Board of Directors of M/s Electrogen Infra
FZE, UAE on or about 19-05-2011, Under the circumstances, and in view of
his resolved capacity as Authorized Signatory for and on behalf of M/s
Electrogen Infra FZE, it appeared that he was liable to honor the summons
issued by the DRI. Accordingly, while conveying these aspects to him, another
summons bearing F.No. DRI/MZU/CI-224/2013 dated 20-11-2013 (RUD/C-7)
was issued seeking his presence on 27-11-2013 with specific
information/documents which were specified at Annexure A to the summons.
Since Shri Vinod Shantilal Shah failed to appear on the designated date and
time, another summons bearing DRI/MZU/CI-224/2013 dated 29-11-2013,
(RUD/C-7) seeking his presence on 09-12-2013 was issued. In a letter bearing
reference no. Nil dated 05-12-2013 (RUD/D-48), received via FAX, Shri Vinod
Shantilal Shah, while acknowledging the receipt of both the summonses dated
20-11-2013 and 29-11-2013, stated that he had forwarded the said

of 111
summonses to Electrogen Infra FZE, UAE and that the DRI should deal with
the said company directly. In the letter, he reiterated the stand taken by him in
his letter dated 11-11-2013, stating that he was not in possession of any of the
requisitioned documents. He requested that the matter may be taken up
directly with the company and that DRI should not send any further
correspondence to him.
3.12 In response to the summons issued to Shri Jatin Shah, Shri
Mitesh Dani and Shri Mehul Jani of M/s Electrogen Infra FZE, UAE on 20-11-
2013 and 29-11-2013, Shri Jatin Shah forwarded a letter dated 09-12-2013
(RUD-D/49), by fax. In context of the information sought from each of them
under the summons, he submitted, inter-alia, that Electrogen Infra FZE,
owned by Electrogen Infra Holdings Pvt. Ltd., Mauritius, was a free zone
establishment with limited liability based in Sharjah Airport International Free
Zone and that they had been advised by local lawyers in the UAE that parting
with any of the information/details/documents to authorities outside UAE
would constitute breach of the UAE laws. He concluded by stating that since
the information/documents sought by the DRI contained highly confidential
commercial/business information, Electrogen Infra FZE would not be able to
part with any such information/details/documents.
3.13 Summons under section 108 of the Customs Act, 1962 were again
issued to Shri Vinod Shantilal Adani and Shri Jatin Shah on 10-12-2013
(RUD/C-7 & RUD/C-2 ) seeking their presence on 17-12-2013. Summons were
also issued on the same day i.e 10-12-2013 in the name of Shri Mitesh Dani
and Shri Mehul Jani, seeking their presence on 18-12-2013. (RUD/C-6) Since
they failed to present themselves and join the investigation, fresh summons
were issued to Shri Vinod Shantilal Adani and Shri Jatin Shah on 20-12-2013
(RUD/C-7 & RUD/C-2) seeking their presence on 27-12-2013 and to Shri Shri
Mitesh Dani and Shri Mehul Jani on 20-12-2013, seeking their presence on
30-12-2013 (RUD/C-6).
3.14 A summary of the summons issued from time to time to Shri Vinod
Shantilal Shah and employees of M/s Electrogen Infra FZE, UAE is tabulated
below :-
Table-1
List of summonses issued to officials of M/s Electrogen Infra FZE, UAE
S.N
o
Name of official of
Electrogen Infra FZE,
UAE summoned
F.No. under which summons
issued
Date of issue of summonses and
designated date for remaining present
with information/documents
requisitioned
1. Shri Vinod Shantilal
Shah
F.No.DRI/MZU/C.I.-224/2013 30-11-2013 for appearance on 11-11-2013
11-11-2013 for appearance on 18-11-2013

of 111
2. Shri Jatin Shah F.No.DRI/MZU/C.I.-224/2013 30-04-2013 for appearance on 06-05-2013
3. Shri Mitesh Dani F.No.DRI/MZU/C.I.-224/2013 15-10-2013 for appearance on 28-10-2013
4. Shri Mehul Jani F.No.DRI/MZU/C.I.-224/2013 15-10-2013 for appearance on 28-10-2013
3.15 Despite repeated summons, the aforesaid persons failed to present
themselves to join investigations and also failed to furnish
information/documents that were requisitioned from them, on one plea or the
other.
3.16 Investigations revealed that Vinod Shantilal Shah is another
name of Vinod Shantilal Adani (one of the promoter and shareholders in
flagship company of the Adani group viz. M/s Adani Enterprises Ltd.) as is
evident from contents of copy of a letter dated September 13, 2012 (RUD/D-50)
addressed to, inter-alia, the Bombay Stock Exchange Limited and the National
Stock Exchange of India Limited regarding disclosure under Regulation 31 of
the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The said letter and its annexure have been signed by Shri Vinod Shantilal
Adani clearly stating, inter-alia, that Vinod Shantilal Adani is also known
as Vinod Shantilal Shah. Scanned image of the said letter and disclosure
page is reproduced below :-

of 111
3.17 It is further gathered that Shri Vinod Shantilal Adani, is one of the
five sons of Late Shri Shantilal Adani, his other brothers being Shri
Mahasukhbhai S. Adani, Shri Vasantbhai S. Adani, Shri Gautambhai S.Adani,
and Shri Rajeshbhai S. Adani. Each of the brothers of the Adani family holds a
substantial stake in the flagship company of the Adani Group i.e M/s Adani
Enterprises Limited.
4.0 Contracts between EIF and Shanghai Electric Group Co Limited
(SEC) for Boiler-Turbine-Generator (BTG) supplies for APML & APRL
4.1 ICICI Bank Limited, Singapore had through their letter bearing Ref.
No. 01/BGSIN/26201 dated 03-06-2012 conveyed sanction of Advance
Payment Guarantee (APG) of USD 65 Million to EIF. The letter dated 03-06-
2012 titled as ‘Credit Arrangement Letter’ was obtained from ICICI Bank’s
Corporate office in Mumbai (RUD/D-51). From the said letter, it appears that
the Bank had sanctioned the APG facility to EIF subject to certain terms and
conditions, which were set out in an Annexure to the said letter.
4.2 Perusal of the Annexure reveals as under –
i) The Applicant is EIF and the beneficiaries are APML and APRL.
(clauses at 2 & 3 of the Annexure).
ii) As per clauses 4 & 5, Shri Vinod Shantilal Shah is the promoter of
EIF and a firm named Electrogen Infra Holdings Pvt. Ltd.,
Mauritius is the parent company of EIF, in which 100% of the
equity is stated to be held by Shri Vinod Shantilal Shah.
iii) Clause 6 spells out the abbreviation of ‘SEC’ as ‘Shanghai Electric
Group Co. Limited’,(here-in-after referred to as ‘SEC’ also),a
company incorporated in China.
iv) Clause 12, which deals with Applicant/SEC agreement (i.e.
agreement between EIF and SEC),refers to agreements dated July
15, 2009 and November 06, 2009 between the Applicant and SEC
for supply of steam generators (boilers), steam turbines, generators
and auxiliaries by the SEC to the Applicant.
v) Clause 14 of the Annexure refers to agreements between the
Applicant i.e. EIF and the beneficiaries i.e.APML and APRL.
4.3 It was apparent that agreements/contracts, referred to in the
Annexure to the Credit Arrangement Letter would have been obtained by the
Bank while processing the sanction of the credit facility. Accordingly,
correspondence was initiated under this office letter bearing

of 111
F.No.DRI/MZU/CI-224/2013/ dated 27-03-2014 (RUD/C-9) with the Chief
Manager, ICICI Bank Limited, Singapore, who had conveyed sanction of the
APG facility to EIF, requesting submission of, inter-alia,copies of the
Agreements dated July 15, 2009 and November 06, 2009, between EIF and
SEC,China for supply steam generators (boilers), steam turbines, generators
and auxillaires by SEC to EIF.
4.4 In their initial response, the ICICI Bank Limited, Singapore,
through a letter dated 02-04-2014 (RUD/D-52), conveyed that though they had
provided the APG facility, EIF did not accept it and the APG facility was,
therefore, not availed by EIF. The Bank also conveyed that no documents had
been lodged by EIF with the Singapore Branch. Therefore, the issue was taken
up and pursued with officials of ICICI Bank’s corporate office at Bandra Kurla
Complex. ICICI Bank, vide their letter dated 07-04-2014 (RUD-D/53),
forwarded certain documents, which appeared to be documents submitted by
EIF to the Bank authorities while applying to the Bank for the APG facility.
4.5 Based on information provided by EIF to the Bank in the aforesaid
document, details of certain contracts are tabulated below :-
Table-2
Details of Agreements between EIF and APML & APRL
S.No. Contract between Scope of supply /project Contract Value in
USD
Contract date
1. APML <-> EIF Boiler, Turbine, Generator &
Accessories for power plant in
Maharashtra (2 x 660 MW)
736,000,000 05-11-2009
2. APRL <-> EIF Boiler, Turbine, Generator with
Accessories for power plant in Kawai,
Rajasthan (2 x 660 MW)
790,000,000 Stated to being
finalised
Note: 1. The Contract at Sr.No. 1 was entered into between APML and M/s M/s Sichuan
Machinery and Equipments FZE (earlier name of EIF)
2 . The Contract at Sr.No. 2 was entered into on 02-04-2010
4.6 From the foregoing table, it appears that EIF had undertaken upon
itself the obligation to supply equipment and machinery to APML and APRL. It
further appears from the facts disclosed by EIF to the Bank that in order to
procure the equipment&machinery to be supplied to APML and APRL, EIF
had,inter-alia, finalised M/s Shanghai Electric Group Co. Ltd., (SEC) as one of
the major suppliers, pursuant to a lot of deliberations and negotiations, as
claimed in the document titled ‘Brief Background’. The contracts referred at
clause 12 [refer para 4.2(iv) above] i.e. the contracts between EIF and SEC,
appear to be contracts for supply of equipments to APML and APRL- the

of 111
contracts listed at Table-2 above. This is also corroborated by the information
given at clause 14 [refer para 4.2 (v) above] of the Annexure to the Credit
Arrangement Letter. Based on the above information disclosed to ICICI Bank
and other documents furnished to the Bank, EIF appears to have requested the
bank for sanction Advance Bank Guarantee Limits (USD 160 Million),
Performance Bank Guarantee Limits (USD 40 Million) and Letter of Credit
Limits (75 Million).
4.7 The apparent back-to-back nature of the proposed procurement
from SEC and supply to APML & APRL by EIF is evident in the information
disclosed by it to the Bank in the documents titled ‘Information Memorandum’
dated April, 2010 (RUD/D-54). The information provided in the documents
forwarded by ICICI Bank in relation to various contracts entered into by EIF
with SEC for procurement of goods and for back-to-back supply, under supply
agreements with APML and APRL appear to have been summarised by EIF,
while providing information to the bank, from the contents of individual
agreements to which EIF was a signatory.Particulars of the contracts referred
to in the documents are tabulated below -
Table-3
Details of Contracts between EIF & SEC and the contracts between EIF
and APML & APRL
S.
No
Agreement
Date
Brief of scope of supplies
covered by Agreement
Executing
parties
Consideration
amount as per
Agreement
(USD)
Purpose
1. 15-07-2009 Steam Generator (Boiler)
and Auxiliaries 2x660 MW
Power Project at Tiroda,
Maharashtra
EIF/SME and
SEC
97465318 For supply to APML’s
power project at Tiroda in
Maharashtra
2. 15-07-2009 Turbine, Generator and its
Auxiliaries 2x660 MW
Power Project at Tiroda,
Maharashtra
EIF/SME and
SEC
81509682 For supply to APML’s
Maharashtra
178975000 Total for APML power
project
3. 06-11-2009 Steam Generator (Boiler)
and Auxiliaries 2x660 MW
Power Project, Kawai in
Rajasthan
EIF/SME and
SEC
97465318 For supply to APRL’s
power project at Kawai in
Rajsthan
4. 06-11-2009 Turbine, Generator and its
Auxiliaries 2x660 MW
Power Project, Kawai in
Rajasthan
EIF/SME and
SEC
82679682 +
addition of
7920000 after
amendment
For supply to APRL’s
Rajasthan
188,065,000 Total for APRL power
project
5. 05-11-2009 Boiler-Turbine-Generator
equipment for 2 x 660
(Unit No. 4 & 5) at Tiroda
in Maharashtra
EIF/SME and
APML
736,000,000 For supply to APML’s
Maharashtra
6. 02-04-2010 Boiler-Turbine-Generator
equipment for 2 x 660 at
Kawai in Rajasthan
EIF and APRL 790,000,000 For supply to APRL’s
Rajsthan
Note: 1. The Contracts at SrNo. 1 & 2 were signed on 15-07-2009 by SEC with M/s Sichuan Machinery
and Equipments FZE which itself was registered in the UAE on 07-07-2009 (barely 8 days
prior) and contract 3 & 4 after few months.

of 111
2. The Contracts at Sr.No. 1 & 4 totally valued at over USD 367 Million were signed by M/s
Sichuan Machinery and Equipments FZE when its total paid-up share capital was only AED
1,50,000 divided into one share of AED 1,50,000 owned by one single person.
4.8 From the above, it is apparent that for APML’s power project at
Tiroda in Maharashtra, for supply of BTG equipment, while contracts at Sr.No.
1 & 2 are between EIF and SEC; the contract at Sr.No. 5 was the corresponding
back-to-back contract between EIF and APML. Similarly, for APRL’s power
project at Kawai in Rajasthan, while contracts at Sr.No. 3 & 4 are between EIF
and SEC; the contract at Sr.no. 6 was corresponding back-to-back contract
between EIF and APRL.
4.9 One of the terms and conditions given in the Annexure to the
Credit Arrangement Letter dated 03-06-2012, deals with Contractual Comfort.
The initial clause of the said contractual comfort reads as under :-
The obligations of the NDU Providers shall be supported by a non-disposal arrangement in
respect of shares of Adani Power Limited (APL) and/or Adani Enterprises Limited (AEL)
(“Company Shares”) held by the NDU Providers, for the period during which the Facility is in
existence, to be provided by the NDU Providers in the following manner, subject to application
law’ :
1. Non-Disposal Arrangement (defined below) over Companies’s Shares (“NDU shares”) Non-
disposal undertaking from the NDU Providers over the Companies Shares (NDU)
2. NDU Shares shall be free of any lock inconditions and encumbrances except the one-year
lock-in over APL shares, applicable due to the initial public offer made by APL and are in
dematerialized form. The said lock-in period of APL shares shall end on August 20,2010.
Provided that after the APL shares become free, they shall be continued to be kept free
from any lock-in conditions.
3. NDU Shares will be held in in an escrow dematerialized account (“Demat Account”) of the
NDU Providers to be opened with a depository participant in India acceptable to the Issuer
(“Escrow Arrangement”);
4. The Guarantors shall execute an irrevocable power of attorney and such other
arrangements in relation to the NDU Shares under the Escrow Arrangement in favour of
any persona as may be acceptable to the issuer (“Power of Attorney”). The Power of
Attorney shall include among other rights, the right to operate the Demat account, to sell
NDU Shares in the event of occurrence of an Event of Default and to apply the sale
proceeds towards payment of dues under the Guarantee and/or facility. Proceeds from
the sale of NDU Shares shall be deposited in a designated account of NDU Providers held
with a bank acceptable to the Issuer (“Designated Account Arrangement”.
5. The NDU, Escrow Arrangement, Power of Attorney and the Designated Account
Arrangements shall be referred to as the “Non-Disposal arrangement”.
6. The value of the NDU shares shall be determined daily as per the Valuation Methodology
(as defined below) and the NDU Providers shall ensure that:

of 111
• The value of the NDU Shares is at all times equal to 1.35 times the outstanding
Facility amount (“Threshold Value”); and
• ………
7. …………….
8. The Applicant NDU Providers shall have the flexibility to provide cash cover (Cash
Collatoral) over which ICICI Bank shall have a charge for the Facility anytime during the
APG Tenor. In an event when the Applicant Guarantors has provided Cash Collatoral, top-
up and release of shares shall be based on the outstanding Facility amount calculated as
“outstanding Facility amount – available Cash Collateral”.
9. The Applicant NDU Providers has the right at all times to replace the Cash Collateral
(provided in accordance with the provision above) with appropriate shares as described
above.
The Contractual Comfort shall be created prior to issuance of the first APG under the facility”
4.10 From a sequential and holistic reading of the above conditions in
the light of the sanction accorded and conveyed by ICICI Bank to Electrogen
Infra FZE, UAE, it appears that the Bank has imposed these conditions as a
security measure/security cover in exchange for having extended the APG
facility to the extent of 65 Million USD to Electrogen Infra FZE, UAE. The
security acceptable to the ICICI bank for extending/providing the APG facilities
to Electrogen Infra FZE, appears to be, inter-alia, in the form of equity shares
(1.35 times the facility amount) of Adani Power Limited (the controlling entity
for power sector business of the Adani Group) and/or Adani Enterprises
Limited, (the flagship company of the Adani Group).As per the arrangement,
the ICICI Bank through its nominee (entity/person acceptable to ICICI Bank
/nominated by it, in whose favour irrevocable power of attorney to,inter-alia,
operate the escrow account and sell the shares in the event of default by
Electrogen Infra FZE, UAE resulting in payment of dues by them to the
Bank)should be in a position to recover dues from Electrogen Infra FZE, arising
out of utilisation of funds from the sanctioned APG facility.
4.11 In other words, the aforesaid transaction, which is akin to pledging
of shares of APL/AEL in favour of ICICI Bank and/or its nominee by EIF in lieu
of the APG facility extended by the ICICI Bank, appears to be acceptable to the
Bank. It appears that the ICICI Bank Limited have extended the facility subject
to the condition of pledging of shares of APL/AEL, by considering Shri Vinod
Shantilal Adani as owner of EIF and also that he was a promoter shareholder
in Adani Enterprises Limited (the flagship company of the Adani Group). ICICI
Bank, therefore, appears to have been influenced by the direct relationship
between the Adani Group and Electrogen Infra, through a common entity in

of 111
Vinod Shantilal Adani. Although the APG facility may not have been availed by
Electrogen Infra FZE, UAE, as conveyed by ICICI Bank in its letter dated 02-04-
2014 (para 4.4 above), it would only be reasonable to infer that the issuance of
Credit Arrangement Letter and the terms &conditionsconveyed therein are the
result of mutual negotiations and considerations acceptable to both the parties
i.e EIF and ICICI Bank. ICICI Bank, therefore, appears to be aware of direct
nexus and influence of the Adani Group with Electrogen Infra FZE. This is also
corroborated by the exchange of mails between the officials of ICICI Bank and
Shri Jatin Shah of EIF, UAE, wherein the ICICI Bank has through a mail,
sought details of NDU provider who would be providing cover in the form of
shares of value equal to 1.5 times of the credit facility. Few mails exchanged
between the then officials of ICICI Bank and Shri Jatin Shah, Director of
Electrogen Infra Limited, which apparently led to sanction of the APG facility
on the part of ICICI Bank Limited to Electrogen Infra FZE, for USD 65 Million,
have been submitted by ICICI Bank under cover of their letter dated 16-04-
2014 (RUD/D-55). Shri Vinod Shatilal Adani, being a share-holders of AEL,
appears to be fully aware of his ability to fulfil the NDU condition by way of
arrangement for the required value of shares to be held in the escrow account
in view of his direct relationship with the Group. The Bank as well as
EIF,therefore,appear to be clearly aware of the direct and close nexus between
EIF and the Adani Group.
4.12 Amongst the other enclosures to ICICI Bank’s letter dated 16-04-
2014,is a document titled ‘Details of Director’ provided by Electrogen Infra
FZE, UAE to ICICI Bank Limited at their specific insistence, which provides
names and other particulars of Shri Jatin Champaklal Shah and Shri
Moreshwar Vasant Rabade, as Directors of Electrogen Infra FZE, UAE (RUD/D-
56). Shri Moreshwar Vasant Rabade appears to be full name of ‘M.V.Rabade’
listed as one of the Board Member in the document titled ‘Brief Background’
referred to at paragraph 2.5.4 above. It further appears from a certification
dated 01-06-2010 (para 2.5.4) given by Shri Jatin Shah of Electrogen Infra FZE
that Shri Vinod Shantilal Shah, Shri Moreshwar V.Rabade and Shri Jatin C.
Shah, were members of the Board of Directors of Electrogen Infra FZE, UAE
(RUD/D-57).
4.13 From perusal of the signatures of individuals who had signed the
Contract dated 05-11-2009 between M/s Electrogen Infra FZE, UAE and M/s
Adani Power Maharashtra Limited, for supply of equipments to the 2 x 660
power project at Tiroda in Maharashtra, having aggregate consideration of USD
736,000,000, (Sr.No. 5 of Table-3), it appears that Shri Moreshwar Vasant

of 111
Rabade (Director of Electrogen Infra FZE UAE at one point of time) has signed
the said agreement for and on behalf of M/s Adani Power Maharashtra Limited.
5.1 Vide letter bearing F.No.DRI/MZU/CI-224/2013 dated 17-10-2013
(RUD/C-10) addressed to the Adani Group, information & documents were
sought in respect of every consignment invoiced by EIF,UAE to Adani Group
entities in India (including APML and APRL), starting with the inception of such
supplies. A specific request was made in the said letter for submission of self-
attested copies of the bills of entry filed for clearance together with copies of the
corresponding invoices& packing lists raised by M/s Electrogen Infra FZE,
&relevant negotiable copies of bills of lading/airway bills.A summary of the in-
formation available in the bills of entry was also sought for specific particulars
conveyed to them.
5.2 AEL, vide its letter bearing Ref.AEL/DRI/2013-14/104 dated 30-
10-2013 (RUD/D-58), furnished information and documents, which included
those pertaining to imports by APML and APRL through EIF. Copies of bills of
entry, invoices, packing lists and bills of lading forwarded by AEL, in respect of
various entities of the Adani Group (including APML and APRL),were accompa-
nied by a tabulated chart which appeared to be a billofentry-wise summary of
specific information available in the bills of entry. Subsequently, vide another
letter F.No.DRI/MZU/CI-224/2013 dated 07-11-2013 (RUD/C-11), Adani
Group was requested to submit self-attested photo-copies of ‘Country of Origin’
certificates for individual shipments supplied by EIF to APML and APRL. AEL,
vide their letter bearing Ref : AEL/DRI/2013-14/136 dated 15-11-2013
(RUD/D-59), submitted, inter-alia, copies of some of the Country of Origin cer-
tificates in respect of some of the shipments of goods invoiced by EIF, UAE to
APML and APRL.
5.3 Perusal of the tabulated data providing bill of entry-wise
information revealed that the details were in respect of 301 and 262
consignments imported upto 05-10-2013 by APML and APRL, respectively. As
per the information provided for APML, the 301 consignments were found to
have been cleared through JNPT Nhava Sheva, Mumbai Port and ACC, Sahar.
In the case of APRL, the 262 consignments were found to have been imported
and cleared mainly through Mundra Port, besides some clearances through
Ahmedabad Air Cargo, JNPT Nhava Sheva and Mumbai Port.It, therefore,
prima facie appeared that APML and ARPL have imported 301 and 262
consignments on invoices raised by EIF with an aggregate declared invoice

of 111
value of about USD 721 Million (full contract value -736 Million USD) and
about USD 756 Million (full contract value-790 MillionUSD), respectively.
6.0 Analysis of Invoice numbers and dates on both invoices: OEM vis-a-
vis Intermedairy at UAE (EIF) in respect of supplies from China
6.1 Scrutinyof the invoice numbers of the invoices raised by EIF on
APML revealed that the invoice numbers appearing on the invoices by and large
containedletters and words ‘ÁPML’ / ‘Tiroda’ / ‘Tirora’/ ‘T’ (T to denote Tiroda)
as part of their alpha-numeric numbers, particularly in the case of shipments
from China, apparently to indicate that the supplies covered under the said
invoices were meant for APML’s power project at Tiroda in Maharashtra.
Similarly, in the case of the invoices raised by EIF on APRL, scrutiny of the
invoice numbers revealed that the invoice numbers by and large contained
letters and words ‘ÁPRL’ / ‘Kawai’ / ‘’Rajasthan’/ ‘K’ (K to denote Kawai) as part
of the their alpha-numeric numbers, particularly in the case of shipments from
China, apparently to indicate that the supplies covered under the said invoices
were meant for APRL’s power project at Kawai in Rajasthan.
6.2 The invoice numbering pattern followed by EIF in respect of the
invoices raised by it on APML was not found to be uniform /consistent in terms
of the nomenclature / contents thereof.
6.3 From scrutiny of the invoice numbers available in the tabulated
data pertaining to APML, it appeared that EIF had allotted numbers to the
invoices raised by it on APML, in varying patterns. A large number of
shipments to APML were found to be from Chinese ports.Illustrative examples
of distinct invoice numbering patterns apparently followed by Electrogen Infra
FZE, UAE while allotting invoices numbers to the invoices raised by it for
supply to APML from Chinese ports, identified on the basis of a broad grouping
of commonalities in the numbering patterns,are listed below :-
i) Tiroda-3/Supply/2013/160
ii) T3/141 & 142
iii) T-1 & 2/Supply/2013/046
iv) T/131 & 132
v) Tirora-92
vi) Tirora-B80
vii) Tirora-Phase2-140
viii) Tirora-Phase2-T35TH5
ix) LK-TirodaPh3-20101130

of 111
6.4 Efforts were made to ascertain the reasons and basis of different
numbering patterns so as to identify the parameters based on which distinct
numbering patterns had been followed. Associated import documents such as
bills of lading and country of origin (COO) certificates for the shipments
covered by each class of invoice having a distinct numbering pattern were
examined. The shipments in majority of the cases were from Chinese ports,
and the COO certificates thereof were found to be issued by the China Council
for Promotion of International Trade which indicated,inter-alia, the name of the
exporter as certified by the Council. Tabulated below are names of the
exporters and samples of their invoice numbers & dates as found declared and
certified by the China Council in the COO certificates vis-à-visthe invoice
numbers and dates appearing in the corresponding invoices raised by EIF on
APML:-
Table-4
Matching of invoice No.s & date as raised by EIF on APML vis-à-vis the
OEM/actual exporters’ invoice numbers as mentioned in the COO
Certificates
Sr.
No.
Invoice numbers & dates
appearing on EIF invoices raised
on APML
Exporter as per the
corresponding COO
certificate
Invoice numbers & dates of actual
exporter as indicated on the
corresponding COO at Column 10
thereof
[A] [B] [C] [D]
1. Tiroda-3/Supply/2013/160 dt. 30-
08-2013
APL (Beijing) EXIM Co.
Ltd., China
Tiroda-3/Supply/2013/160 dt. 30-08-
2013
2. T3/141 & 142 dt. 29-05-2013 T3/141 & 142 dt. 29-05-2013
3. T-1 & 2/Supply/2013/045 dt. 13-
11-2012
T-1 & 2/Supply/2013/045 dt. 13-11-
2012
4. T/131 & 132 dt. 22-04-2013 T/131 & 132 dt. 22-04-2013
5. Tirora-92 dt. 19-06-2013
Shanghai Electric Group
Co. Ltd., Shanghai, China
Tirora-92 dt. 19-06-2013
6. Tirora-B80 dt. 11-12-2012 Tirora-B80 dt. 11-12-2012
7. Tirora-Phase2-162 dt. 21-03-2011 Tirora-Phase2-162 dt. 21-03-2011
8. Tirora-Phase2-T35TH5 dt. 05-07-
2012
Tirora-Phase2-T35TH5 dt. 05-07-2012
9. LK-TirodaPh3-20101130 dt 30-11-
2010
Fujian Longking Co. Ltd.,
China
LK-TirodaPh3-20101130 dt 30-11-
2010
Note: The invoice numbers and date in columns B and D are same.
6.5 Similar analysis in respect of imports by APRL revealed the same
pattern as shown in the following Table-5:-

of 111
Table-5
Matching of the invoice No.s & date raised by EIF on APRL vis-à-vis the
OEM/actual exporters’ invoice numbers as mentioned in the COO
Certificates
Sr.
No.
Invoice numbers& dates appearing
on EIF invoices raised on APRL
Exporter as per the
corresponding COO
certificate
Invoice number& dates of actual
exporters as indicated on the
corresponding COO at Column 10
thereof
[A] [B] [C] [D]
1.
Kawai/Supply/2013/135 dt. 29-08-
2013
APL (Beijing) EXIM Co.
Ltd., China
Kawai/Supply/2013/135 dt. 29-08-
2013
2.
K/130 & 131 dt. 29-07-2013 K/130 & 131 dt. 29-07-2013
3.
Kawai/104 & 105 dt. 23-02-2013 Kawai/104 & 105 dt. 23-02-2013
4.
Rajasthan-46 dt. 03-06-201
Shanghai Electric
Group Co. Ltd.,
Shanghai, China
Rajasthan-46 dt. 03-06-201
5.
Rajasthan-T37TH2 dt. 26-09-2012 Rajasthan-T37TH2 dt. 26-09-2012
6. Rajasthan-G22 dt. 27-11-2011 Rajasthan-G22 dt. 27-11-2011
7.
LK-Kawai-20100106 dt. 06-01-2011
Fujian Longking Co.
Ltd., China
LK-Kawai-20100106 dt. 06-01-2011
8.
LK-Kawai-SP-20101225 dt. 25-12-2010 LK-Kawai-SP-20101225 dt. 25-12-2010
Note: The invoice numbers and date in columns B and D are same.
6.6 The strange identicality of invoice numbers and dates in the
invoices of the three Chinese suppliers – the actual exporters who supplied the
goods directly to APML/ APRL in India and the intermediary at UAE i.e. EIF is
not only unusual but exposes the true nature of EIF. This shows that EIF is
not an independent supplier, per-se, but merely an intermediary dummy agent
for invoice copying and value inflation. While the invoice number and date in
the EIF (intermediary) invoices remains the same as in the actual exporters’
invoices, the name of the supplier is changed and value of the same goods
covered by the invoices has been inflated (as would be apparent from
discussion below) for enabling siphoning off of money abroad as a part of the
modus-operandi.
6.7 The three entities figuring as exporters for shipments received by
APML and APRL viz. APL (Beijing) EXIM Co. Ltd., Shanghai Electric Group Co.
Ltd., and Fujian Longking Co. Ltd., China, from whom EIF appears to have
sourced the goods, have been declared and certified as exporters in the relevant
COO certificates.The goods shipped by the respective shippers, on arrival in
India, were cleared by APML and APRL on the strength of invoices raised by
EIF on APML and APRL.

of 111
7.0 SHIPMENTS FROM COUNTRIES OTHER THAN CHINA
7.1 As per the COO certificates for shipments to APML and APRL from
countries other than China,in respect of which also invoices were raised by EIF
on APML or APRL, it was noticed that the exporters by and large were various
Original Equipment Manufacturers (OEMs)/actual suppliers located in
overseas countries from where the cargo was shipped directly to India. Since
the power projects to be set up by APML and APRL were of identical capacity (2
x 660 MW) and were based on same technology (thermal coal-fired power
plants), it appears that the Adani Group have chosen common suppliers for
both the projects. This is clearly evident from the fact that the names of
majority of the exporters/shippers, as indicated in the corresponding bills of
lading/COO certificates in respect of shipments to APML & APRL from ports
located outside China, were common (OEMs/original suppliers who had
shipped cargo to APML for use in the project at Tiroda in Maharashtra were
also found to have shipped cargo to APRL for use in the project at Kawai, in
Rajasthan). The common shippers/exporters identified on the basis of their
names being declared and certified as shippers/exporters in the bills of lading
and/or COO certificatesfor shipments received by APML and APRL and cleared
upon their arrival into India on the strength of invoices raised by EIF on APML
or APRL are given below :-
Table-6
Common shippers/exporters as per the Bills of Lading and COO
Certificates pertaining to shipments imported by APML&APRL from
countries other than China
Sr.No. Name of shipper/exporter as indicated on
the Bill of Lading for imports by APML &
APRL
Name of exporter as indicated on
corresponding COO certificate for
imports by APML & APRL
[A] [B] [C]
1. American Materials Technology, Houston,
USA
Erndtebrucker Eisenwerk GmbH & Co. KG,
Germany
2. Auma Riester GmBH & Co. KG, Germany Auma Riester GmBH & Co. KG, Germany
3. CCI, AG Switzerland CCI, AG Switzerland
4. Dalmine SPA, Italy Dalmine SPA, Italy
5. IBF SPA, Italy IBF SPA, Italy
6. Keonwoo Metals Co. Ltd. , South Korea Keonwoo Metals Co. Ltd. , South Korea
7. Ablan Engineering Corporation China LVF SPA, Italy
8. Parcol SPA, Italy Parcol SPA, Italy
9. Renold Power Transmission Limited, United
Kingdom
Renold Power Transmission Limited,
United Kingdom
10. Maxonic Electric Apparatus HK Limited,
Hong Kong
STI SRL Italy
11 Safe-Fire Inc. , USA Safe-Fire Inc. , USA
12 Samshin Limited, Korea Samshin Limited, Korea
13 Sumitomo Corporation, Japan Sumitomo Corporation, Japan
14 Torishima Pump Mfg. Co. Ltd., Japan Torishima Pump Mfg. Co. Ltd., Japan
15. Tyco Valves & Controls Italia SRL, Italy Tyco Flow Control Hongkong Limited, Hong

of 111
Kong
16. V & M Deutschland GmBH, Germany Vallourec & Mannesmann Tubes, Germany
17. Voith Turbo GMBH & Co. KG,Germany Voith Turbo GMBH & Co. KG,Germany
18. Qingdao Wemay Textile Co. Limited, China Guangzhou Yaxiang Trade Co. Limited,
China
19. Zhezhiang Hangxiao Steel Structures, China Zhezhiang Hangxiao Steel Structures,
China
The above analysis is based on scrutiny of the information available in the
import documents viz. bills of lading and country of origin certificatespertaining
to 301 and 262 shipments imported into India by APML and APRL,
respectively, from countries other than China. It is evident from the above that
common entities have been utilised by EIF to supply goods from overseas load
ports to APML and APRL.It may be observed that in majority of the cases, the
shipper as per the bill of lading and the exporter as per the corresponding COO
certificate is the same entity.
7.2 Apart from shippers/suppliers common to both projects, as listed
in Table-6, there were certain shippers/suppliers unique to either of the
projects. The names of such unique Shippers/Exporters, as appearing on COO
certificatespertaining to consignments invoiced by EIF in the names of APML
and APRL, for imports from countries other than China, are tabulated below:-
Table-7
Unique exporters/shippers for shipments to APML as per Bills of Lading /
COO Certificates
Sr.No. Name of shipper/exporter as indicated on the
Bills of Lading
Name of exporter as indicated on COO certificates
A B C
1. Dresser Inc. USA Dresser Inc. USA
2. Dropsa SPA, Italy Dropsa SPA, Italy
3. Longjeng (HongKong) Co. Ltd. Not available
4. Rotork Limited, Hong Kong Rotork Controls Limited, England
5. Stork Thermeq B.V., The Netherlands Stork Thermeq B.V., The Netherlands
6. Suntech Engineering Co. Limited, Hong Kong Wier Valves & Controls, USA
Table-8
Unique exporters/shippers for shipments to APRL as per Bill of Lading /
COO Certificates
Sr.No. Name of shipper/exporter as indicated on the
Bills of Lading
Name of exporter as indicated on COO certificate
A B C
1. Grandcrown Enterprises Limited, Hong Kong Renold Gears, England
2. Cai Engineering Corp USA Copes-Vulcan, Houston, USA

of 111
8.0 Three invoices of Actual Suppliers/OEMs as submitted by
Bank of Baroda
8.1 Documents submitted by Bank of Baroda, Main Branch, Bur
Dubai, included copies of certain Letters of Credit and invoices. Scrutiny
revealed that the invoices appear to have been raised by Shanghai Shantra
Trading Co. Limited for supply of goods to APML &APRL and by Reynold Power
Transmission Limited, UK for supply of goods to APML (RUD/D-60). Tabulated
below are particulars of information as available in the invoices raised by these
firms:-
Table-9
Original Supplier/OEM invoices raised for supplies to APML/APRL
S.No. Name of the
shipper/OEM
Invoice No.
/date
Description of
goods
Amount
CIF
LC No. /BL No.
indicated on invoice
Purpose
A B C D E F G
1. Shanghai
Shantra
Trading Co.
Ltd.,
Shanghai,
China
10SDMS01G160
DE dt. 26-01-
2011
“Voith” Hydraulic
Coupling Type
R17K500M-2 sets
, Hydraulic
Coupling Spares
USD
1647395 9001IMPLC00149110/.
CLTU08020030836
For supply to
APML, power
project at
Tiroda in
Maharashtra
2. Shanghai
Shantra
Trading Co.
Ltd.,
Shanghai,
China
10SDMS01G180
IN dt. 04-05-
2011
“Voith” Hydraulic
Coupling Type
R17K500M-
(including spare
parts)- 2 sets ,
(Unit price:
USD823697.50)
USD
1647395
9001IMPLC0012211/
CLTU08020032584
For supply to
APRL, power
project at
Kawai in
Rajasthan
3.
Reynold
Power
Transmission
Limited, UK
50582 dt. 25-
06-2013
Spares for
Regerative APH
(Speed Reducer,
gears, pinions,
shafts,
bearings,clutch,
assembly, fluid
coupling
GBP
54279.68
9001IMPLC0013213/
ISCO61077
For supply to
APML power
project at
Tiroda in
Maharashtra
8.2 Perusal of sr.no. 1 & 2 of Table-9 shows that though the goods
covered by the two invoices are meant for two different projects (APML and
APRL), the description, quantity, value and brand/make of the goods is
identical. Since the projects being set up in India at Tiroda in Maharastra and
Kawai in Rajasthan are of identical capacity (2 x 660 MW), it appears that two
sets of identical goods have been ordered for supply from Shanghai Shantra
Trading Co. Ltd. , China-one meant for installation at APML’s project at Tiroda
and the other for APRL’s project at Kawai in Rajasthan. Perusal of copies of the
corresponding LCs found accompanying the invoices revealed that both the LCs
covering consignments at Sr.No. 1 & 2 were opened by Bank of Baroda,
wherein the applicant’s name was EIF and the beneficiary name was
mentioned as Shanghai Shantra Trading Co. Ltd., thereby implying that EIF

of 111
had applied to Bank of Baroda, Dubai Main Branch, for opening the LCs in
favour of Shanghai Shantra Trading Co. Ltd., China. It, therefore, appears that
Electrogen Infra FZE was to make the payment to Shanghai Shantra Trading
Co. Limited. , China for the aforesaid goods through the mechanism of Letters
of Credit. In respect of Sr.No. 3, pertaining to the invoice raised by Reynold
Power Transmission Limited, UK on the buyer indicated in the invoice i.e EIF
for supply to APML power project at Tiroda, opening of LC appears to have been
ordered on Bank of Baroda by EIF in favour of Reynold Power Transmission
Limited, UK, thereby implying that EIF was to make the payment to Reynold
Power Transmission Limited, UK for the aforesaid goods to be shipped to APML.
8.3 Efforts made to trace the corresponding imports into India on the
basis of the bills of lading numbers reflected in column F of Table-9above
revealed that the aforesaid goods were imported under Bills of Entry Nos.
782555 dt. 25-03-2011, 3900092 dt. 25-06-2011 and 2922349 dated 06-08-
2013, brief particulars of which are tabulated below :-
Table-10
Bills of Entry details for Original Supplier/OEM invoices given at Table-9
S.No. Bill of Entry
No. /date
EIF invoice no. /date EIF’s
invoice
amount
(USD)
Bill of Lading No. /date
A B C E F
1. 782555/
25-03-2011
10SDMS01G160 DE dt. 26-01-
2011
3294790 CLTU08020030836 dt. 05-02-2011
2. 3900092/25-
06-2011
10SDMS01G180 IN dt. 04-05-
2011
3294790 CLTU08020032584 dt. 09-05-2011
3. 2922349/ 06-
08-2013
50582 dt. 25-06-2013 230550 ISCO61077 dt. 03-07-2013
Total
6820130
8.4 It is evident from comparison of the invoice numbers &dates in
column Cof Table-9 with the invoice numbers and dates figuring at Column Fat
Table-10 that EIF continued to adopt invoice numbers and dates of
OEMs/shippers for the invoices raised by it on APML and APRL as it was doing
for the shipments from China. Invoice values available in the two sets of
invoices for the same goods in respect of the above three consignments
imported into India are tabulated below:-
Table-11
Value as per Original Supplier/OEMs invoice vis-à-vis the EIF invoice
Sr.
No.
OEM invoice raised on EIF Invoice raised by EIF on
APML/APRL)
Difference
(USD)
[F] as %
of [C]
A B C D E F G
Inv.No. /date Value (USD) Inv.No. /date Value (USD)
1 10SDMS01G160 DE
dt. 26-01-2011
1647395 10SDMS01G160 DE
dt. 26-01-2011 (on
APML)
3294790 1674395 100%

of 111
2 10SDMS01G180 IN dt.
04-05-2011
1647395 10SDMS01G180 IN
dt. 04-05-2011 (on
APRL)
3294790 1674395 100%
3. 50582 dt. 25-06-2013 85041.22
(equivalent of
GBP 54279.68
converted to
USD)
50582 dt. 25-06-2013
(on APML)
230550 145509 171%
Note: Invoice numbers & dates are same in Columns B and D but corresponding
values in columns C and E are different.
From the figures worked out in the Table-11, Electrogen Infra FZE, UAE
appears to have inflated the invoice price to the extent of 100% over Shanghai
Shantra’s prices in the two back-to-back invoices (Sr.No. 1 & 2) raised on APML and
APRL, respectively, on the strength of which the goods appear to have been cleared in
India. In case the case of goods shipped by Reynold Power Transmission Limited, the
value inflation noticed in the EIF’s invoice (sr.no.3) is to the extent of 171%. It,
therefore, prima- facie appears that the goods cleared on the strength of the EIF’s
invoices raised on APML and APRL have been grossly over-valued by way of inflated
invoices raised by the intermediary-EIF. Scanned images of the two sets of the three
invoices, viz. invoices raised by Shanghai Shantra and Reynold Power Transmission
Limited on EIFand the back-to-back invoices raised by EIF on APML/APRL are given
below for ease of appreciation:-

of 111
8.5 Shri Moreshwar Vasant Rabade has signed the Agreement dated
05-11-2009 between APML and EIF on behalf of APML (para 4.13 refers). The
fact that Moreshwar Vasant Rabade was a Director in EIF, the UAE based
intermediary invoicing agent, is clearly recorded in the documents forwarded
by ICICI Bank (para 2.5.4 refers). A common person working for two different
companies i.e. for APML based in India and for EIF based in the UAE, not only
obliterates the distinction between these two companies as if they are two sides
of the same coin but also establishes commonality of interest.
8.6 As brought out in the foregoing paragraphs, EIF have maintained
the same invoice numbers and dates as those of the OEMs/actual suppliers in
the invoices raised by it on APML and APRL. From scrutiny of invoices and
other documents, it appears that -
i) EIF is neither an independent entity nor a bonafide one.
ii) EIF is only an intermediary invoicing agent for inflating value.
iii) Invoices of EIF are neither genuine nor authentic. For the same
shipment, there are two invoices with identical numbers and dates -
one that of the actual supplier in China or elsewhere, (the USA, the UK
etc.) and the other raised by EIF in the UAE. It is obvious that EIF
could not have raised invoice for same goods on same date with
identical number, when the goods had not even been shipped from
abroad. Perusal of the dates of shipment as per bills of lading for the
three shipments (Table-10) reveals that the dates of the shipments as
per the bills of lading are on dates subsequent to the dates on the
invoices (as is evident from the dates of the bills of lading). Thus, it is
apparent that the second invoice raised by EIF is bogus document - a
nominal paper created for the purpose of siphoning off of money
abroad.
9.1 From the import documents, it appeared that APML and APRL had
opened various Irrevocable Letters of Credits (L/Cs) in favour of their
intermediary invoicing agent i.e Electrogen Infra FZE, UAE for the purpose of
making outward remittances against EIF’s invoices. The details of said L/Cs
are tabulated below :-

of 111
Table-12
Particulars of L/Cs opened by APML and APRL in favour of EIF for
outward remittances
S.
No.
L/C
Applicant L/C No. /date Amount(US$) L/C opening Bank
L/C Advising/Favouring
Bank
A B C D E F
1 APRL
2305FLCDA110081
dt. 27.12.2011 19000000
BANK OF INDIA, Large
Corporate Branch,
AHMEDABAD
Axix Bank Ltd., DIFC Branch,
Dubai, UAE
2 APRL
2305FLCDA110082
dt. 27.12.2011 18000000
Corporate Branch,
AHMEDABAD
Dubai, UAE
3 APRL
2305FLCDA110083
dt. 29.12.2011 19000000
Corporate Branch,
AHMEDABAD
Dubai, UAE
4 APRL
2305FLCDA110084
dt. 30.12.2011 18000000
Corporate Branch,
AHMEDABAD
Dubai, UAE
5 APRL
0415212IM0050028
dt. 03.03.2012 19000000
STATE BANK OF INDIA, CAG
Branch, AHMEDABAD
Dubai, UAE
6 APRL
2305FLCDA120001
dt. 02.01.2012 4250000
Corporate Branch,
AHMEDABAD
Dubai, UAE
7 APML
3189FLC0052/2011
dt. 22.12.2011 4500000
CANARA BANK, PRIME
CORPORATE BRANCH,
AHMEDABAD
Dubai, UAE
8 APML
7050812IM0000004
dt. 04.01.2012 13650000
STATE BANK OF
TRAVANCORE, Mumbai
through SBI NEW YORK
Dubai, UAE
9 APML
IMLC 2011/457071
dt. 01.07.2011 19000000
CORPORATION BANK,
NAVRANGPURA,
AHMEDABAD
Dubai, UAE
10 APML
IMLC 2011/457072
dt. 06.07.2011 19000000
CORPORATION BANK,
NAVRANGPURA,
AHMEDABAD
Dubai, UAE
11 APML
IMLC 2011/457073
dt. 06.07.2011 10500000
CORPORATION BANK,
NAVRANGPURA,
AHMEDABAD
Dubai, UAE
12 APML
3189FLC0034/2011
dt. 17.09.2011 19000000
CANARA BANK, PRIME
CORPORATE BRANCH,
AHMEDABAD
Dubai, UAE
13 APML
3189FLC0035/2011
dt. 17.09.2011 19000000
CANARA BANK, PRIME
CORPORATE BRANCH,
AHMEDABAD
Dubai, UAE
14 APML
3189FLC0038/2011
dt. 19.09.2011 19000000
CANARA BANK, PRIME
CORPORATE BRANCH,
AHMEDABAD
Dubai, UAE
15 APML
3189FLC0039/2011
dt. 20.09.2011 19000000
CANARA BANK, PRIME
CORPORATE BRANCH,
AHMEDABAD
Dubai, UAE
16 APML
0192911FLU000050
dt. 06.07.2011 6750000
ALLAHABAD BANK, S. P.
NAGAR BRANCH,
AHMEDABAD
Dubai, UAE
17 APML
0192911FLU000048
dt. 04.07.2011 19000000
NAGAR BRANCH,
AHMEDABAD
Dubai, UAE
18 APML
0192911FLU000046
dt. 04.07.2011 19000000
NAGAR BRANCH,
AHMEDABAD
Dubai, UAE
19 APML
041510IM0050152
dt. 04.07.2010 185000000
Branch, AHMEDABAD
through SBI Tokyo
Bank Of Baroda, Dubai Main
Branch,Dubai
20 APML
0415210IM0050110
dt. 06.05.2010 1000000
Branch, AHMEDABAD
through SBI DUBAI
Branch,Dubai
21 APRL
0415213IM0050009
dt. 11.02.2013 9170100
Branch, AHMEDABAD
through SBI ANWERPEN
Dubai, UAE
22 APRL
0415212IM0050184
dt. 31.12.2012 7616100
Branch, AHMEDABAD
Dubai, UAE

of 111
23 APRL
0415212IM0050183
dt. 31.12.2012 2358500
Branch, AHMEDABAD
Dubai, UAE
24 APRL
0415212IM0050182
dt. 31.12.2012 582100
Branch, AHMEDABAD
Dubai, UAE
25 APRL
0415212IM0050181
dt. 29.12.2012 2358500
Branch, AHMEDABAD
Dubai, UAE
26 APRL
0415212IM0050179
dt. 29.12.2012 582100
Branch, AHMEDABAD
Dubai, UAE
27 APRL
0415212IM0050180
dt. 29.12.2012 582100
Branch, AHMEDABAD
Dubai, UAE
28 APRL
0415212IM0050175
dt. 28.12.2012 16786100
Branch, AHMEDABAD
Dubai, UAE
29 APRL
0415212IM0050177
dt. 28.12.2012 2358500
Branch, AHMEDABAD
Dubai, UAE
30 APRL
0415212IM0050176
dt. 28.12.2012 582100
Branch, AHMEDABAD
Dubai, UAE
31 APRL
0415211IM0050115
dt. 21.06.2011 582100
Branch, AHMEDABAD
Dubai, UAE
32 APRL
0415211IM0050114
dt. 20.06.2011 18000000
Branch, AHMEDABAD
Dubai, UAE
33 APRL
0415210IM0050214
dt. 24.11.2010 56000000
Branch, AHMEDABAD
through SBI LONDON
Branch,Dubai
34 APRL
0415210IM0050211
dt. 20.11.2010 19000000
Branch, AHMEDABAD
through SBI LONDON
Branch,Dubai
35 APRL
0415211IM0050017
dt. 20.11.2010 13000000
Branch, AHMEDABAD
through SBI DUBAI
Banque De Commerce ET DE
Placements Sa-DIFC Branch
Dubai ultimately to Bank Of
Baroda, Dubai
36 APRL
0415211IM0050018
dt. 18.01.2011 12000000
Branch, AHMEDABAD
through SBI DUBAI
Banque De Commerce ET DE
Placements Sa-DIFC Branch
Dubai ultimately to Bank Of
Baroda, Dubai
37 APRL
0415210IM0050225
dt. 09.12.2010 75000000
Branch, AHMEDABAD
through SBI SINGAPORE
Bank Of America, NA,
Singapore ultimately to Bank
Of Baroda, Dubai
38 APRL
0415210IM0050172
dt. 06.08.2010 17000000
Branch, AHMEDABAD
through SBI LONDON
Branch,Dubai
39 APRL
0415210IM0050168
dt. 29.07.2010 5000000
Branch, AHMEDABAD
through SBI LONDON
Branch,Dubai
40 APRL
0415211IM0050058
dt. 08.03.2011 18000000
Branch, AHMEDABAD
through SBI FRANKFURT
Branch,Dubai
41 APRL
0415211IM0050062
dt. 12.03.2011 17000000
Branch, AHMEDABAD
Dubai, UAE
42 APRL
0415211IM0050063
dt. 12.03.2011 15000000
Branch, AHMEDABAD
Dubai, UAE
43 APRL
0415211IM0050106
dt. 30.05.2011 17000000
Branch, AHMEDABAD
Dubai, UAE
44 APRL
0415212IM0050028
dt. 03.03.2012 19000000
Branch, AHMEDABAD
Dubai, UAE
45 APRL
0415212IM0050030
dt. 13.03.2012 6700000
Branch, AHMEDABAD
Dubai, UAE
46 APRL
0415211IM0050108
dt. 06.06.2011 15000000
Branch, AHMEDABAD
Dubai, UAE
47 APML
0415212IM0050039
dt. 29.03.2012 32900000
Branch, AHMEDABAD
Dubai, UAE
48 APRL
0415212IM0050038
dt. 29.03.2012 14347857
Branch, AHMEDABAD
Dubai, UAE
49 APRL
0415212IM0050089
dt. 18.07.2012 18505000
Branch, AHMEDABAD
Dubai, UAE
50 APML
0415212IM0050093
dt. 31.07.2012 21500000
Branch, AHMEDABAD
through SBI LONDON
Dubai, UAE
51 APRL
0415212IM0050094
dt. 01.08.2012 19000000
Branch, AHMEDABAD
Dubai, UAE

of 111
52 APML
0415212IM0050116
dt. 11.09.2012 19200000
Branch, AHMEDABAD
through SBI NEW YORK
Dubai, UAE
53 APML
0415211IM0050037
dt. 15.02.2011 21500000
Branch, AHMEDABAD
through SBI Tokyo
Dubai, UAE
54 APML
0415212IM0050033
dt. 22.03.2012 13150000
Branch, AHMEDABAD
Dubai, UAE
55 APML
0415212IM0050029
dt. 07.03.2012 19600000
Branch, AHMEDABAD
through SBI LONDON
Dubai, UAE
56 APML
000411IML000001
dt. 20.04.2011 19000000
ANDHRA BANK,
ELLISBRIDGE, AHMEDABAD
Dubai, UAE
57 APML
000411IML000002
dt. 21.04.2011 19000000
ANDHRA BANK,
Dubai, UAE
58 APML
000411IML000003
dt. 27.04.2011 19000000
ANDHRA BANK,
Dubai, UAE
9.2 From the details provided in Column F of Table-12 above, it
appears that remittances were to be made to two banks in the UAE viz. AXIS
Bank, DIFC Branch, Dubai and Bank of Baroda, Bur Dubai for the benefit of
EIF. Therefore,it appeared that remittances from India by APML and APRL
towards invoices raised by the UAE based intermediary-EIF were to be made to
accounts held by the UAE intermediary in these banks. Discreet enquiries
revealed that EIF had also utilised the services of these two banks for the
purpose of making outward remittances to various overseas firms/entities that
had actually shipped the goods to APML and APRL. Inputs gathered indicated
that substantial amounts of outward remittances have been made by EIF
through these two accounts held by them with AXIS Bank and Bank of Baroda
in the UAE to various overseas entities/firms by way of Outward Telegraphic
Transfer (OTT) using the SWIFT Network. SWIFT (Society for Worldwide
Interbank Financial Telecommunication) is a network that enables
banks/financial institutions worldwide to send and receive information about
financial transactions in a secure, standardized and reliable environment as
well as for transfer of funds. In short, SWIFT enables instant electronic transfer
of funds globally from one account to another.
9.3 In respect of Axis Bank, DIFC Branch, Dubai, a request was made
under F.No.DRI/MZU/CI/223/2013 dated 06-11-2013 (RUD/C-12) to them to
compile a list of all such outward remittances effected by them on the
instructions/directions/orders of EIF to various overseas entities together with
legible photo-copies of the complete SWIFT messagesrelating to such outward
remittanceseffected by the bank from the account of EIF for every outward
remittance made for and on behalf of EIF. Axis Bank, vide letter bearing F.No.
AXIS/DIFC/1154/2013-14 dated 13-11-2013 (RUD/D-61), forwarded copies of
documents for outward remittances made to various entities from the account

DRI 2014.pdf

DRI 2014.pdf

DRI 2014.pdf

Recommended

More Related Content

What's hot

What's hot(20)

Similar to DRI 2014.pdf

Similar to DRI 2014.pdf(20)

More from Hindenburg Research

More from Hindenburg Research(20)

Recently uploaded

Recently uploaded(20)

DRI 2014.pdf