DRI Aug 2017.pdf

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DIRECTORATE OF REVENUE INTELLIGENCE
OFFICE OF THE ADDITIONAL DIRECTOR GENERAL (ADJUDICATION)
2ND FLOOR, OLD BUILDING, NEW CUSTOM HOUSE, BALLARD
ESTATE, MUMBAI - 400 001.
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Order No. 12/KVSS (12) ADG MUMBAI/2017-18 Dated : 22.08.2017
(Issued by Shri. K.V.S. Singh, Additional Director General (Adjudication), D.R.I., Mumbai)
wRvr war* Afar mita :
Adani Power Maharshtra Limited & Others *1 DRI/MZU/CI-224/ (APML/APRL)/2013
dated 15.05.2014 cdliT TFi ft-
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Based on Show Cause Notice issued to M/s Adani Power Maharshtra Limited & Others vide F.No.
DRI/MZU/CI-224/ (APML/APRL)/2013 dated 15.05.2014
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This copy is granted free of charge for the private 'use of the person to whom it
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An appeal against this order lies with the Customs, Central Excise and Service
Tax Appellate Tribunal in terms of section 129A of the Customs Act, 1962 on
payment of 7.5% of the duty demanded where duty or duty and penalty are in
dispute, or penalty, where penalty alone is in dispute. It shall be filed within
three months from the date of communication of this order. The appeal lies
with the West Regional Bench of the said Tribunal situated at 3rd, 4th and 5th
Floor, Jai Centre, P.D'mello Road, Masjid (East), Mumbai - 400 009.
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In case where an order is passed by bunching several show cause notices on
an identical issue against the same party, separate appeal may be filed in each
case.
Woo oof .

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4. TIF 314'Rg TM C.A.-3 at 41717' t ..1141 Wi61r ,A)14) AR' q
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The Appeal should be filed in Form C.A.-3 prescribed under Rule 6 of the
Customs (Appeals) Rules, 1982 and shall be signed and verified by the person
specified in sub-rule 2 of rule 3 rules ibid.
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A fee of (i) Rs. 1000/- in case where the amount of duty and interest
demanded and the penalty imposed in the impugned order appealed against is
Rupees Five Lakhs or less, (ii) Rs. 5000/- in case where such amount exceeds
Rupees Five Lakhs but not exceeding Rupees Fifty Lakhs and (iii) Rs. 10000/-
in case where such amount exceeds Rupees Fifty Lakhs, is required to be paid
through a crossed bank draft in favour of the Assistant registrar of the Bench
of the Tribunal on a branch of any nationalized bank located at the place
where the bench is situated and demand draft shall be attached to the Appeal.
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Once copy of the Appeal should bear a Court Fee Stamp of Rs. 50 and said
copy of this order attached therein should bear a Court Fee Stamp of Rs. 50 as
prescribed under Schedule item 6 of the Court Fee Act, 1970.
******************************************************

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DIRECTORATE OF REVENUE INTELLIGENCE
OFFICE OF THE ADDITIONAL DIRECTOR GENERAL (ADJUDICATION)
2ND FLOOR, OLD BUILDING,NEW CUSTOM HOUSE, BALLARD ESTATE
MUMBAI — 400 001.
Tel. No. 022-22757030/22757034
1. CHARGES ADDUCED IN THE SHOW CAUSE NOTICE:
1.1.1 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) were shipped directly to India,
documents were 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 was remitted to Dubai. The activities of M/s
Electrogen Infra FZE, UAE were 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 was
remitted to respective OEMs, the extra amount was routed to the Mauritius
account of the parent company of Electrogen Infra FZE i.e.. M/s Electrogen Infra
Holding Pvt. Ltd.
1.1.2 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 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) were
subsidiaries of Adani Power Limited which itself was a subsidiary of Adani
Enterprises Limited (AEL), the flagship company of theAdani Group.
Page 1 of 279

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1.1.3 APML had set up a coal based thermal power plant of 2 x 660 MW
(Unit No. 4 & 5) at A-1 MIDC, Tiroda, District-Gonda, 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.
1.1.4 APRL had 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.
1.1.5 APML and APRL registered the respective supply contract for
assessment under the customs tariff heading 98.01 and sought 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 were relevant to the present investigation regarding their over-
valuation. All the imports had 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.
1.2.0 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, 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

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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 :-
Copy of the invoic9 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.
0 M/S. PMC PROJECTS (INDIA) PVT LTD
ii) M/S. ADAM 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
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account opening form furnished while opening the account together with
self-attested legible 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."
1.2.1 DOCUMENTS FROM AXIS BANK (First Lot)
1.2.1.1 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/BD/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 appeared 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.
1.2.1.2 M/s Adani Power Limited, vide its reply bearing Ref:
APUDRI/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

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• 1.2.2.1 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).
• 1.2.2.2 The ICICI Bank's Corporate office in Mumbai forwarded certain
• documents under cover of their letter bearing reference no. NIL dated 19-06-
• 2013 (RUD/D-5) as received by them from their DIFC Branch, in Dubai. The
•
• Page 5 of 279
any agreements/ contracts with the Hyundai Group. In view of the information
provided by M/s Adani Power Limited, it was confirmed that Shri Jatin Shah of
EIF, at some point of time in the ast, was an employee of Adani Power Limited.
1.2.1.3 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.
1.2.1.4 Shri Rajiv Rustogi, General Manager (Accounts), through his reply
bearing Ref.APUDRI/Mundra/xxx/RR/2013 dated 09-05-2013 (RUDID-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.
1.2.1.5 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 effedt from 31-08-2009.
1.2.1.6 It, therefore, appeared 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.
1.2.2 DOCUMENTS FROM ICICI BANK LTD (First Lot)

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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 (RUDID-6). Documents found
relevant to the investigation are discussed in the following paras.
1.2.2.3 As per letter dated 26th April 2012 (RUDID-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 appeared that Shri Vinod
Shantilal Adani had a direct control over the activities of EIF through the
Asankhya Resources Family Trust.
1.2.2.4 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 (RUDID-8), which contain
parallel 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 had 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
Navind Beeharry 16 July 2009 08 March 2011
Nasser Ali Shaban Ahli 16 July 2009 01 October 2009

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Chang Chung-Ling 01 October 2009 12 January 2010
Vinod Shantilal Shah 12 January 2010 N/A
Note: Name of Nasser 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
Director on 12-01-2010, was 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.
41 iii) The Directors' Report of EIH appeared 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 was 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
0 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.
•
v) EIH had an investment of USD 40,872 as on 31-03-2010 in shares
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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.
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• Page 7 of 279

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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 dwried subsidiary, this dividend income was also
received from EIF only.
1.2.2.5 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 was
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 ElF.
1.2.2.6 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 was carried out as 'India'. Other
information declared in the form was annual turnover of AED 512 Million. The
purpose of opening the relationship was declared as 'Loans' (RUDID-10).
1.2.2.7 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 dealt 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

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Authorised Signatory. From the permanent residential addresses declared by the
two individuals representing OF, it appeared that they were residents of
Ahmedabad and Vadodara (earl r Baroda), respectively.
1.2.2.8 Scrutiny of a two-page document titled 'Addendum to Memorandum
and Articles of Association of EIF. Scrutiny of the Addendum revealed that SAIF
Zone authorities had 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 All 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 AED 1,50,000 only, sold, transferred and assigned fully and wholly, the said
one share of EIF to EIH. The Addendum was signed by Shri Vinod Shantilal Shah
as representative of EIH. After execution of the Addendum, EIH had been
described as the 'owner' substituting Mr. Nasser All 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)
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1.2.2.9 As per copy of 'Share Certificate No. 4107' dated 21-06-2010
issued by Government of Sharjah, SAIF Zone, it was certified that EIH,
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incorporated in the Republic of Mauritius, was a registered holder of 36 shares of
• AED 54,00,0000 of EIF which was 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).
• 1.2.2.10 As per copy of Global Business Licence No. C211017320 dated
41 21-01-2011 granted by the GoV
rernment of the Republic of Mauritius to EIH, it
• was, inter-alia, mentioned that the company would not offer its shares or
• otherwise raise capital from the public. (RUD/D-15)
1.2.2.11 Copy of Certificate of Incorporation on Change of Name issued on
• 08-01-2010 by the Registrar of Companies, Republic of Mauritius certified that
• the name of M/s Sichuan Machinery & Equipment Import & Export Co. Ltd had by
• special resolution changed its name and was now incorporated under the name
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of M/s ElectroGen Infra Holding Pvt. Ltd (RUD/D-16).
• 1.2.3 DOCUMENTS FROM BANK OF BARODA
• 1.2.3.1 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
•
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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 was retrieved by the officers of DRI on
18-11-2013.
1.2.3.2 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 07-072009 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 by Shri 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'.
1.2.3.3 Perusal of copy of document titled 'Board Resolution of M/s
Sichuan Machinery & Equipments FZE dated 19th November 2009 (RUD/D-19)
revealed 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 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 only be signed by Mr. Naseer All 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).
1.2.3.4 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 All Shaban Ahli. This Addendum (amendment) to the

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Memorandum and Articles of Association dated 07-07-2009 of EIF was
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).
1.2.3.5 From the facts narrated above, it was 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.
1.2.4 KYC DOCUMENTS FROM AXIS BANK (Second Lot)
1.2.4.1 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 hearing 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.
1.2.4.2 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 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 appeared to have
been signed by Shri Jatin Shah on 10-07-2010 (RUD/D-25).
1.2.4.3 As per Section h 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).
Page 11 of 279

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1.2.4.4 As per resolution dated 10-07-2010 oq the Board of Directors of ElF,
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).
1.2.4.5 From letter dated 10-07-2010 of EIF addressed to Axis Bank, it was
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 (RUDID-28).
1.2.4.6 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).
1.2.4.7 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 was
authorized 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).
1.2.4.8 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).
1.2.4.9 In letter dated 23-10-2012 addresied 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).
1.2.4.10 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).
1.2.4.11 Copies of the amended License Certificates issued by SAIF Zone
authorities as of 07-08-2012 and 19-06-2013 showed 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 showed Shri Jatin Shah as the Manager and activity undertaken by the

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company as Trading in Equipment related to power lines, ports and transmission
lines.
1.2.4.12 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 was 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 of the scn
respectively.
1.2.4.13 The documents included 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 -
Page 13 of279

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1.2.4.14 Perusal of the Register of Members showed 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.
1.2.5 Documents from ICICI Bank Limited (2nd Lot)
1.2.5.1 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 Kuria 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.
1.2.5.2 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-D140), 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.
1.2.5.3 In the said documents, EIF also disclosed to the bank on 09-04-
2010 that it was 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 had been mentioned as Board Members of EIF.
1.2.5.4 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 provided names and other particulars of Shri Jatin Champaklal Shah
and Shri Moreshwar Vasant Rabade, as Directors of EIF. Moreshwar Vasant
Rabade appeared 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 of the scn. The documents also included 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

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• V.Rabade and Shri Jatin C. Shah were members of the Board of Directors of EIF
• (RUD/D-43).
• 1.3.0 Visit to the offices of Adani Group companies in Ahmedabad and
•
summons issued to various persons of the group including those
connected with EIF.
•
1.3.1 The supplier on record for many of the Adani Group companies
• including APML and APRL was the UAE based firm EIF, which appeared 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
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Nayan Rao, Vice President, Corporate Affairs, of the Adani Group voluntarily
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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
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iv) Adani Group's server room, Fortune Muse.
• 1.3.2 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
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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, 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.
• 1.3.3 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 was described variously as authorised signatory, Manager, Chief Financial
•
• Page 15 of 279

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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.
1.3.4 M/s Electrogen infra FZE, UAE, vide a letter bearing reference no.
NIL dated 11-10-2013 (RUDID-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.
1.3.5 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 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.
1.3.6 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,

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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.
1.3.7 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. DRUMZU/C1-224/2013 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 ,4nnexure A to the said summons. Details of the
information/documents sought from him at Annexure A was 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 were as reproduced at para 3.3 of the SCN.
1.3.8 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, Sharjah) 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 issueed in his name.
1.3.9 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 by 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.
1.3.10 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
Page 17 of 279

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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.
1.3.11 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 by 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 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.
1.3.12 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

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• contained highly confidential commercial/business information, Electrogen Infra
• FZE would not be able to part with any such information/ details/ documents.
• 1.3.13 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
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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).
• 1.3.14 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
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.DPI / 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
1.3.15 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.
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1.3.16 Investigations revealed that Vinod Shantilal Shah was 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 was
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evident from contents of copy of a letter dated September 13, 2012 (RUD/D-50)
addressed to, inter-alia, the ilbmbay Stock Exchange Limited and the National
Stock Exchange of India Limited regarding disclosure under Regulation 31 of the
SEBI (Substantial Acquisitioniof Shares and Takeovers) Regulations, 2011. The
said letter and its annexure-. have been signed by Shri Vinod Shantilal Adani
clearly stating, inter-alia, thatVinod Shantilal Adani was also known as Vinod
Shantilal Shah. Scanned image of the said letter and disclosure page is
reproduced below :-
adani
September 23, 201.2
To,
The Company Secretary
SSE Ltd. National Stock Exchangeof India Ltd. Aden] Enterprises Ltd.
Murnbal Murnbal Ahmadabad
Dew51r,
Subject Dbdosure under regulation 32 of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2o22
Please find attached herewith disclosure in the prescribed femme In compliance with regulation 31
of SEM (Substantial Acquisition of Shares and Takeovers) Regulations, 2012.
Kindly Vika the some on mord.
Vinod Sharenel Mani
Vinod Shantital Adani (also known as Vinod SWIM' Shah)

Format for disclosure by the iarornoter tai to the Stock Exchanoes and to the Tame*
Company for encumbjanugf spire. UpypcgSgp of encumbrance/ release of
e =
*J. •
1
Sharies Miami us►
If saulstlans..2211
Name of the Target company (TC) ADAM ENTERPRISES LIMITED
Name of the Promoter(s) on whose shares
encumbrance was created/ lovokedl-teleased (tick
the relevant one)
VE100 S. ADANI
(ALSO KNOWN AS VINOD It SHAH)
Date of reporting 15-09-2012
Names of the stock exchanges where the shares
of the target company are listed
ESE Ltd.
National Stock Exchange of India Ltd.
Details of the promoters' holding:
(The term wevenr indicates creation" invocation/ release of encumbrance, as the case may be )
Promoted.)
or
PAC.
with him
Pre-event holding Details of events
pertaining to
encumbrance
Poet went
holding
(encumbered
shares to be
excluded)
(*)Detalls of
encumbrance
(pledge/1bn
or other- glue
details
Names Number % of
total
share
capital
Type — -
creation!
invocation/
release
Dab
(a)
Number % of
Total
share
capital
Vinod S. Adani
(aka Vinod S.
Shah)
9,09,41,484 827 creation 12-
Sept
2012
192384 0.02 Pledge in favour
of IDS!
Trusteeship
Services Ltd.
(1 Details shall include the details regarding the person(s) on whose favour the encumbrance has been
created and other Wipe rit features of such encumbrance
Signature of the Authorized Signatory
Place: Dubai
Date:13-09-2012
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• 1.3.17 It was further gathered that Shri Vinod Shantilal Adani, was 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 held a
•
substantial stake in the flagship company of the*Adani Group i.e. M/s Adani
Enterprises Limited.
• 1.4.0 Contracts between EIF and Shanghai Electric Group Co Limited
•
(SEC) for Boiler-Turbine-Generator (BTG) supplies for APML & APRL
• 1.4.1 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 appeared 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.
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• Page 21 of 279

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1.4.2 Perusal of the Annexure reveals as under —
i) The Applicant was EIF and the beneficiaries were APML and APRL.
(clauses at 2 & 3 of the Annexure).
ii) As per clauses' 4 & 5, Shri Vinod Shantilal Shah was the promoter
of EIF and a 'firm named Electrogen Infra Holdings Pvt. Ltd.,
Mauritius was the parent company of EIF, in which 100% of the
equity was stated to be held by Shri Vinod Shantilal Shah.
iii) Clause 6 spelled 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 dealt with Applicant/SEC agreement (i.e..
agreement betWeen EIF and SEC),refered 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 refered to agreements between the
Applicant i.e. EIF and the beneficiaries i.e..APML and APRL.
1.4.3 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 F.No.DRI/MZU/C1-
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.
1.4.4 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 Kuria 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 AFG facility.
1.4.5 Based on information provided by EIF to the Bank in the aforesaid
document, details of certain contracts are tabulated below :-

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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
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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
•
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1.4.6 From the foregoing table, it appeared that EIF had undertaken upon
itself the obligation to supply equipment and machinery to APML and APRL. It
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further appeared from the facts disclosed by EIF to the Bank that in order to
411
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
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para 4.2(iv) of the scn] i.e.. the contracts between E1F and SEC, appeared to be
contracts for supply of equipments to APML and APRL- the contracts listed at
•
Table-2 of the SCN. This was also corroborated by the information given at
• clause 14 [refer para 4.2 (v) of the scn] 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 appeared to have requested the
• bank for sanction Advance Bank Guarantee Limits (USD 160 Million),
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Performance Bank Guarantee Limits (USD 40 Million) and Letter of Credit Limits
(75 Million).
440
• 1.4.7 The apparent back-to-back nature of the proposed procurement
• from SEC and supply to APML & APRL by EIF was evident in the information
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disclosed by it to the Bank in the documents titled 'Information Memorandum'
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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 appeared 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 -
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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 4x660 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 2x66Q 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-Ginerator
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 APRI 790,000,000 For supply to APRL's
Rajsthan
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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 as 4 after few months.
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 was apparent that for APML's power project at
Tiroda in Maharashtra, for supply of BTG equipment, while contracts at Sr. No. 1
& 2 were between EIF and SEC; the contract a 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 were 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, dealt with Contractual Comfort. The initial
clause of the said contractual comfort read 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
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• 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
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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".
•
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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:
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outstanding Facility amount ("Threshold Value,: and
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• 7.
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• The value of the NDU Shares is at all times equal to 1.35 times the

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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"
1.4.10 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 appearedythat the Bank had 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, appeared 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.
1.4.11 In other words, the aforesaid transaction, which was akin to
pledging of shares of APUAEL in favour of ICICI Bank and/or its nominee by EIF
in lieu of the APG facility extended by the ICICI Bank, appeared to be acceptable
to the Bank. It appeared that the ICICI Bank Limited had extended the facility
subject to the condition of pledging of shares of APUAEL, 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, appeared to have been influenced by the direct
relationship between the Adani Group and Electrogen Infra, through a common
entity in 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 of the scn), it would only be reasonable to infer that

•
•
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the issuance of Credit Arrangement Letter and the terms & conditions conveyed
• therein were the result of mutud negotiations and considerations acceptable to
• both the parties i.e. EIF and IC CI Bank. ICICI Bank, therefore, appeared to be
aware of direct nexus and influence of the Adani Group with Electrogen Infra
•
FZE. This was also corroborated by the exchange of mails between the officials
•
of ICICI Bank and Shri Jatin Shah of EIF, UAE, wherein the ICICI Bank had
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, had
•
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, appeared
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, appeared
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to be clearly aware of the direct and close nexus between EIF and the Adani
Group.
•
• 1.4.12 Amongst the other enclosures to ICICI Bank's letter dated 16-04-
•
2014, was a document titled 'Details of Director' provided by Electrogen Infra
•
FZE, UAE to ICICI Bank Limited at their specific insistence, which provided
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 Members in the document titled 'Brief Background' referred to at
• paragraph 2.5.4 of the scn. It further appeared from a certification dated 01-06-
•
2010 (para 2.5.4 of the scn) given by Shri Jatin Shah of Electrogen Infra FZE that
Shri Vinod Shantilal Shah, Shit Moreshwar V. Rabade and Shri Jatin C. Shah,
•
were members of the Board of Directors of Electrogen Infra FZE, UAE (RUD/D-
57).
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1.4.13 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 appeared that Shri Moreshwar Vasant
4111 Rabade (Director of Electrogen Infra FZE UAE at one point of time) had signed
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the said agreement for and on behalf of M/s Adani Power Maharashtra Limited.
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• Page 27 of 279

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1.5.1 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 en- •
tities in India (including APMir and APRL), starting with the inception of such sup-
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plies. 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 infor- •
mation available in the bills of entry was also sought for specific particulars con- •
veyed to them.
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1.5.2 AEL, vide its letter bearing Ref.AEUDRI/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, in- •
voices, packing lists and bills of lading forwarded by AEL, in respect of various
•
entities of the Adani Group (including APML and APRL), were accompanied by a •
tabulated chart which appeated to be a bill of entry-wise summary of specific in-
formation available in the bills of entry. Subsequently, vide another letter •
F.No.DRUMZU/C1-224/2013„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 : AEUDRI/2013-14/136 dated 15-11-2013 (RUD/D-59), submitted,
•
inter-alia, copies of some of the Country of Origin certificates in respect of some
•
of the shipments of goods invoiced by EIF, UAE to APML and APRL.
•
1.5.3 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 had imported 301 and 262 consignments on invoices raised by
•
EIF with an aggregate declared invoice value of about USD 721 Million (full
contract value -736 Million USD) and about USD 756 Million (full contract value-
790 MillionUSD), respectively. •
•
1.6.0 Analysis of Invoice numbers and dates on both invoices: OEM vis-a-
vis Intermedairy at UAE (EIF) in respect of supplies from China •
1.6.1 Scrutiny of the invoice numbers of the invoices raised by EIF on •
APML revealed that the invoice numbers appearing on the invoices by and large •
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contained letters and words 'APML' / `Tiroda' / `Tirora7 '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
'APRL' / 'Kawai' / "Rajasthan'/ (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.
1.6.2 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.
1.6.3 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
1.6.4 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
Page 29 of 279

•
•
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China Council in the COO certificates vis-a-vis ',lie invoice numbers and dates •
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
[Al DA [Cl ID1
Tiroda-3/Supply/2013/160 dt. 30-08-
2013
1. Tiroda-3/Supply/2013/160 dt. 30-
08-2013 r
APL (Beijing) EXIM Co.
Ltd., China
2. 13/141 & 142 dt. 29-05-2013 I • T3/141 & 142 dt. 29-05-2013
3. T-1 & 2/Supply/2013/045 dt. 13-
11-2012
i ..
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.
1.6.5 Similar analysis in respect of imports by APRL revealed the same
pattern as shown in the following Table-5:-
Table-5
Matching of the invoice No.s & date raised by ED' on APRL vis-a-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] PM [Cl PI
1.
Kawai/Supply/2013/135 dt. 29-08-
2013
) EXIM Co.
APL (Beijing{
Ltd., China
Kawai/Supply/2013/135 dt. 29-08-
2013
2.
K/130 86 131 dt. 29-07-2013 K/130 85 131 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.
•
•
•
appearing in the corresponding invoices raised by EIF on APML:- •
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Table-4
Matching of invoice No.s & date as raised by EIF on APML vis-a-vis
the OEM/actual exporters' invoice numbers as mentioned in the
COO Certificates

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1.6.6 The strange idenucality of invoice numbers and dates in the
invoices of the three Chinese suppliers — the actual exporters who supplied the
goods directly to APMU APRL in India and the intermediary at UAE i.e.. EIF was
not only unusual but exposed the true nature of EIF. This showed that EIF was
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 remained the same as in the actual exporters' invoices,
the name of the supplier was changed and value of the same goods covered by
the invoices had been inflated (as would be apparent from discussion below) for
enabling siphoning off of money abroad as a part of the modus-operandi.
1.6.7 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 appeared to have
sourced the goods, had 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.
1.7.0 SHIPMENTS FROM COUNTRIES OTHER THAN CHINA
1.7.1 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
appeared that the Adani Group had chosen common suppliers for both the
projects. This was 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 :-
Page 31 of 279

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Table-6
Common shippers/exporters as per the Bills of Lading and COO
Certificates pertaining to shipments imported by APML&AP111. 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
[AI 1131 [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
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 was based on scrutiny of the information available in the
import documents viz. bills of lading and country of origin certificates pertaining to
301 and 262 shipments imported into India by APML and APRL, respectively,
from countries other than China. It was evident from the above that common
entities had 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
was the same entity.
1.7.2 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
certificates pertaining to consignments invoiced by EIF in the names of APML
and APRL, for imports from countries other than China, are tabulated below:-
M
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Table-7 •
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Unique exporters/shippers for shipments to APML as per Bills of
Lading / COO Certificates
Sr.No. Name of shipper/exporter as icated 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
1.8.0 Three invoices of Actual Suppliers/ OEMs as submitted by Bank of
Baroda
r 1.8.1 Documents submitted by Bank of Baroda, Main Branch, Bur Dubai,
•
included copies of certain Letters of Credit and invoices. Scrutiny revealed that
• the invoices appeared 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/OE
M
Invoice No.
/date
Description of goods Amolftf
t CIF
LC No. /BL No.
indicated on
invoice
Purpose
A B C D E F G
1. Shanghai
Shantra
Trading Co.
Ltd.,
Shanghai,
China
10SDMSOIGI
60 DE dt. 26-
01-2011
"Voith" Hydraulic
Coupling Type
R17K500M-2 sets,
Hydraulic Coupling
Spares
USD
164739
5
900 1 IMPLC0014911
0/.
CLTU08020030836
For supply
to APML,
power
project at
Tiroda in
Maharasht
ra
2. Shanghai
Shantra
Trading Co.
Ltd.,
Shanghai,
China
10SDMS01G1
80 IN dt. 04-
05-2011
"Voith" Hydraulic
Coupling Type
R17K500M-(including
spare parts)- 2 sets ,
(Unit price:
USD823697.50)
USD
164739
5
9001IMPLC0012211
/
CLTU08020032584
For supply
to APRL,
power
project at
Kawai in
Rajasthan
3.
Reynold
Power
Transmissio
n Limited,
UK
50582 dt. 25-
06-2013
Spares for Regerative
APH (Speed Reducer,
gears, pinions, shafts,
bearings,clutch,assem
bly, fluid coupling
GBP
54279.6
8
9001IMPLC0013213
/
ISC061077
For supply
to APML
power
project at
Tiroda in
Maharasht
ra
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• Page 33 of 279

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1.8.2 Perusal of sr.no. 1 & 2 of Table-9 shows that though the goods
covered by the two invoices were meant for two different projects (APML and
APRL), the description, quantity, value and brand/make of the goods was
identical. Since the projects being set up in India at Tiroda in Maharastra and
Kawai in Rajasthan were of identical capacity (2 x 660 MW), it appeared that two
sets of identical goods had 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 had applied to
Bank of Baroda, Dubai Main Branch, for opening the LCs in favour of Shanghai
Shantra Trading Co. Ltd., China. It, therefore, appeared 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 appeared 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.
1.8.3 Efforts made to trace the corresponding imports into India on the
basis of the bills of lading numbers reflected in column F of Table-9 above
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 ISC061077 dt. 03-07-2013
Total
6820130
1.8.4 It is evident from comparison of the invoice numbers & dates in
column C of 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
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•
• 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)
(I] 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 10SDMSO1G160 DE
dt. 26-01-2011 (on
APML)
3294790
.
1674395 100%
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
•
appeared 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 appeared to have
• been cleared in India. In the case of goods shipped by Reynold Power
• Transmission Limited, the value nflation noticed in the EIF's invoice (sr.no.3) was
• to the extent of 171%. It, therefore, prima- facie appeared 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 EIF and the
• back-to-back invoices raised by EIF on APMUAPRL are given in the scn for ease
• of appreciation.
•
1.8.5 Shri Moreshwar Vasant Rabade had signed the Agreement dated
•
05-11-2009 between APML and EIF on behalf of APML (para 4.13 of the scn).
• The fact that Moreshwar Vasant Rabade was a Director in EIF, the UAE based
• intermediary invoicing agent, was clearly recorded in the documents forwarded
• by ICICI Bank (para 2.5.4 of the scn). A common person working for two different
•
companies i.e.. for APML based in India and for EIF based in the UAE, not only
obliterated the distinction between these two companies as if they were two sides
• of the same coin but also established commonality of interest.
•
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• Page 35 of 279
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1.8.6 As brought out in the foregoing paragraphs, EIF had 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 appeared that -
i) EIF was neither an independent entity nor a bonafide one.
ii) EIF was only an intermediary invoicing agent for inflating value.
iii) Invoices of EIF were neither genuine nor authentic. For the same
shipment, there were 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 was 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) revealed that the dates of the shipments as
per the bills of lading were on dates subsequent to the dates on the
invoices (as was evident from the dates of the bills of lading). Thus, it
was apparent that the second invoice raised by EIF was bogus
document - a nominal paper created for the purpose of siphoning off of
money abroad.
1.9.1 From the import documents, it appeared that APML and APRL had
opened various Irrevocable 4 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 UCs are
tabulated in Table 12 to the SCN.
1.9.2 From the details provided in Column F of Table-12 above, it
appeared 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 had 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) was a network that enabled 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

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