Foreign funds flowing into Adani companies and manipulation of the group’s shares are allegations that the company has faced before. In 1999, Rajesh Adani, the younger brother of Gautam Adani and the director of the Adani Group, was arrested by the Directorate of Revenue Intelligence for evading customs duty. He has been caught by customs several times. The last arrest was in 2013.
The 2004-06 diamond scam was also investigated by the Directorate of Intelligence. There were allegations that Rajesh Adani and Gautam Adani’s brother-in-law Samir Vora were engaged in diamond business and smuggled money to countries like Dubai and Singapore. In 2013, fines were imposed on Rajesh Adani, Sameer Vora and five diamond trading companies linked to Adani Enterprises and the Adani Group.
But in 2015, after the Modi government came to power, the Customs Excise and Service Tax Appellate Tribunal (SESTAT) threw out all the findings of these years-long investigations. In 2007, Sebi banned the Adani Group from the securities market for two years.
Controversial stockbroker Ketan Parekh and associates of Adani’s promoters were found involved in price manipulation of Adani shares between October 1999 and March 2001. Following this, SEBI issued this order. But later such allegations were not clear.
