Rs 6,000 crore Tangedco, Adani coal import ‘scam’ hits international attention

CHENNAI: An alleged coal import scam reportedly worth a whopping Rs 6,000 crore involving the Adani Group and Tamil Nadu, which happened nearly a decade ago, hit the international headlines on Wednesday after a leading financial newspaper alleged in a report that the controversial company passed off low-quality coal as far more expensive cleaner fuel that it supplied to Tangedco.

Citing documents secured by the Organised Crime and Corruption Reporting Project (OCCRP), the Financial Times reported that Adani Group passed off low-quality coal as far more expensive cleaner fuel in transactions with Tangedco. It alleged that the Indonesian mining group Jhonline supplied coal at USD 29/tonne, which Adani supplied to Tangedco for USD 91.91/tonne.

The OCCRP report detailed how the coal supplied by Adani contained 3,500 calories per kilogram while the shipment was sold to Tangedco as 6,000-calorie/kg coal, which is among the highest grades. The newspaper added that it has matched documentation for 22 shipments more, where the grade of 15 lakh tonnes of coal was inflated.

The scam was earlier reported in the State in 2019, when Arappor Iyakkam exposed the alleged ‘Adani coal import scam’, involving Rs 6,000 crore, which happened between 2012 to 2016.

Even as the ruling DMK did not react to the coal scam expose, its ally Congress said it would set up a Joint Parliamentary Committee within one month of the INDIA bloc government taking office to probe such allegations.

Congress leader Rahul Gandhi launched an attack on the BJP and Prime Minister Narendra Modi, alleging that the latter’s “favourite friend Adani" looted thousands of crores of rupees by selling low-grade coal at three times the price, for which the common people paid from their pockets in expensive electricity bills.

CPM state secretary K Balakrishnan said Tangedco was reeling under debt due to this mega scam. “To compensate for the loss, the electricity tariff is increased and the burden continues to be placed on the people. Apart from this, the documents revealed that the use of low-quality coal caused environmental damage to the public and resulted in numerous deaths,” he said, accusing the AIADMK-BJP of being complicit in the scam and seeking a probe to take action against them.

Responding to the Financial Times report, Arappor demanded the State government and the Directorate of Vigilance and Anti-Corruption (DVAC) to investigate the complaint that it had filed in 2019.

“Time and again we have provided enough evidence for investigation regarding both over-invoicing and quality of coal. Will the Tamil Nadu Government and DVAC at least now investigate Arappor’s complaint of a Rs 6,000 crore coal import scam of Tangedco? This coal import scam by Adani and others has not taken place just in Tamil Nadu but has happened throughout India over the last 15 years and there is plenty of evidence in the public sphere. Yet, Prime Minister Modi and his controlled investigative agencies CBI, ED, etc. have remained silent without filing an FIR against Adani’s scam,” said Arappor convenor Jayaram Venkatesan.