Delhi HC instructs DRI & CBI to probe power companies’ alleged overpricing of coal imports & equipment, causing high tariffs.

**Delhi High Court Orders Inquiry into Alleged Overpricing by Power Companies**

Delhi High Court has recently ordered the Directorate of Revenue Intelligence (DRI) and the Central Bureau of Investigation (CBI) to thoroughly investigate allegations of overpricing by power companies. The court has directed the agencies to conduct a meticulous and expeditious inquiry into the claims that certain power companies, including the Adani Group and the Essar Group, over-invoiced coal imports and equipment prices, leading to high power tariffs.

The order by the Delhi High Court comes in response to a plea that sought a thorough investigation into the alleged malpractices by power companies. The petitioners argued that overpricing by these companies has resulted in inflated power tariffs, burdening consumers and causing significant financial losses.

The allegations revolve around the practice of over-invoicing, whereby power companies purportedly manipulate the prices of coal imports and equipment to create an artificial increase in costs. This, in turn, allows them to pass on these inflated costs to consumers, leading to higher electricity tariffs. The alleged overpricing is believed to have caused substantial financial losses to consumers and the government.

The court’s directive to the DRI and the CBI underscores the seriousness of the allegations and the need for a comprehensive investigation. The agencies have been instructed to conduct a detailed examination of the financial records and transactions of the accused power companies. They are expected to scrutinize invoices, contracts, and other relevant documents to ascertain the veracity of the claims.

The Adani Group and the Essar Group, two prominent power companies named in the allegations, have denied any wrongdoing. They have maintained that their business practices are transparent and in compliance with all regulatory requirements. Both companies have expressed their willingness to cooperate fully with the investigation and provide all necessary information to clear any doubts.

The outcome of the investigation holds significant implications for the power sector in India. If the allegations are proven to be true, it would expose a major corruption scandal and highlight the need for stricter regulatory oversight. It could also lead to a reassessment of power tariffs and potential legal action against the accused companies.

The Delhi High Court’s order has been widely hailed as a positive step towards ensuring transparency and accountability in the power sector. Consumer advocacy groups and activists have welcomed the decision, hoping that it will bring justice to the affected consumers and deter future malpractices.

The DRI and the CBI are expected to initiate the investigation promptly and submit their findings to the court within a stipulated timeframe. The court will then assess the evidence and determine the course of action based on the investigation’s outcome.

As the inquiry progresses, it remains to be seen whether the allegations are substantiated and if there will be any legal ramifications for the accused power companies. The case is likely to attract significant attention from various stakeholders, including consumers, industry experts, and regulatory bodies.

In conclusion, the Delhi High Court’s order for a thorough investigation into the alleged overpricing by power companies has raised hopes for justice and accountability. The inquiry by the DRI and the CBI will shed light on the practices of influential power players and their impact on consumers. The outcome of this investigation could have far-reaching implications for the power sector in India and set a precedent for stricter regulation and transparency..

#Breaking Delhi HC orders DRI and CBI to “meticulously and expeditiously” look into the allegations that power companies, including those of Adani Group and Essar Group, over-invoiced coal imports and equipment prices which resulted in high power tariffs.#DelhiHighCourt #Adani… pic.twitter.com/Gqo5P0fytS

— Bar & Bench (@barandbench) December 19, 2023

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@barandbench said #Breaking Delhi HC orders DRI and CBI to “meticulously and expeditiously” look into the allegations that power companies, including those of Adani Group and Essar Group, over-invoiced coal imports and equipment prices which resulted in high power tariffs. #DelhiHighCourt #Adani… twitter.com/i/web/status/1…

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