Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

DRI probes over-valuation of coal imports by power cos.


Date: 08-04-2016
Subject: DRI probes over-valuation of coal imports by power cos
MUMBAI: The Directorate of Revenue Intelligence (DRI) has issued a nationwide alert to its offices and customs formations to scrutinise coal imports for over-valuation.

The alert follows intelligence received by the directorate that over-valuation in coal imports from Indonesia is continuing, and is rampant. The DRI has been investigating 40 power-generating companies and traders for the past couple of years. It has flagged prominent public and private sector companies that are suspected to be inflating the import value of coal beyond that prevailing in the international market.

According to the DRI alert, "the objective is to siphon off money abroad" while "availing higher power tariff compensation based on artificially-inflated cost of the imported coal". The intelligence further indicated that while the coal was directly shipped from Indonesian ports to importers in India, the import invoices were routed through one or more intermediaries based in a third country such as Singapore, Dubai, Hong Kong and British Virgin Islands. These intermediary firms appear to be either subsidiaries of Indian importers or their front companies. This was for the "sole purpose of creating layers (typical of trade-based money laundering) and artificially inflating its landed value", the alert said.

This results in a situation where not only are the end-users paying a considerably higher tariff on account of over-valuation of imported coal but are also being supplied with electricity generated from inferior quality coal. "This is tantamount to deceiving the consumer at two levels. The electricity tariff issue will be looked into by the Central and State Electricity Regulatory Commissions (CERC & SERC)," a DRI official said.

Companies under the scanner include five from the Adani Group, ADAG's Reliance Infrastructure and Rosa Power Supply, Essar Oil and Essar Power Gujarat, JSW Steel and India Cements, along with PSUs like MSTC, NTPC and MMTC.

"In a significant number of cases", the DRI recovered two sets of test reports issued at load port by two different testing agencies for the same consignment of coal - one showing lower gross calorific value (GCV) and the other higher GCV. The test reports with lower GCV appear to be in conformity with the contracts between subsidiary companies or intermediary agents of Indian importers and Indonesian suppliers, reflecting the actual value of the coal.

The test reports with higher GCV, submitted to Indian customs at the time of import, is in line with the supply contracts between the subsidiary companies or intermediary agents of the Indian importers and the power generation companies/Indian importers, reflecting the inflated value of the coal.

Source : timesofindia.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 06-09-2024
Notification No. 42/2024-Customs
Seeks to rescind Notification No. 26/2011-Customs, dated 01.03.2011

Date: 02-09-2024
Notification No. 22/2024-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to exempt export of ATF from the Special Additional Excise Duty when exported to Bhutan.

Date: 02-09-2024
Notification No. 23/2024-Central Excise
Seeks to amend No. 04/2022-Central Excise, dated the 1 30th June , 2022 to exempt export of Petrol and Diesel from the Special Additional Excise Duty when exported to Bhutan.

Date: 02-09-2024
Notification No. 24/2024-Central Excise
Seeks to amend No. 10/2022-Central Excise, dated the 30th June , 2022 to exempt export of Petrol and Diesel from the RIC when exported to Bhutan.

Date: 30-08-2024
Notification No. 21/2024-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to reduce the Special Additional Excise Duty on production of Petroleum Crude.

Date: 30-08-2024
Notification No. 56 /2024-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

Date: 23-08-2024
Notification No. 55/2024 – Customs (N.T.)
Notification No. 55/2024-Customs (N.T.) dated 23.08.2024 to amend Notification no 77/2023 -Customs (N. T.) dated 20.10.2023 (to revise the AIR of duty drawback of gold and silver jewellery/articles)

Date: 16-08-2024
Notification No. 20/2024-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to reduce the Special Additional Excise Duty on production of Petroleum Crude

Date: 14-08-2024
Notification No. 54/2024-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 06-08-2024
NOTIFICATION No. 16/2024–Central Tax
Seeks to notify section 11 to 13 of Finance Act (No.1) 2024



Exim Guru Copyright © 1999-2024 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001