Antinuclear

Australian news, and some related international items

Adani company’s links to corruption in India

The ‘crony capitalist’: Understanding Adani — an Indian perspective, Independent Australia ,  31 August 2017 Freelance Indian journalist Gaurav Tyagi charts the rise of Adani, its finances, its links to corruption and its proposed coal mines in Australia. 

The rise of Adani

Adani Group, led by Gautam Adani, has risen phenomenally during the last decade. It is one of the biggest leveraged business house in India. It is very easy for corporate tycoons with proximity to political powers in India to borrow money from state controlled banks. As a result, Adani borrows a lot of capital from India’s state-owned banks.

Government banks in India have a huge problem with bad loans, wherein businessmen borrow huge capital from them but don’t pay it back, resulting in bank’s writing off these sums as non performing assets or bad loans.

Adani is the head of a conglomerate, which is India’s biggest port operator, largest private producer of electricity. The group also has substantial interests in coal mining, civil construction, logistics, international trade, education, real estate, edible oils and food storage.

Contrary to media reports about his humble origins, Gautam Adani comes from a business background. ..

According to Forbes magazine, the 55-year-old Ahmedabad-based businessman had a net worth of US$8 billion (AUD$10 billion) as at 30 August 2017.

Adani’s close links with the Indian Prime Minister

Both hailing from the Indian province of Gujarat, Gautam Adani is one of Indian Prime Minister Narendra Modi’s closest associates.  During the campaigning for Indian parliamentary elections in 2014, Modi used Adani’s private aircrafts to fly around Indian for his electoral campaign. During that time, Modi made corruption by the incumbent government a big point in his election speeches…….

Adani’s Misdeeds

The biggest case involving black money (unexplained/untaxed funds) before the establishment of the SIT was that of the Adani Group.

Adani group allegedly took out over Rs (Indian rupees) 5,000 crores (1 crore = 10,000,000, therefore about AUD$1 billion) to tax havens through inflated bills for the import of power equipment from South Korea and China.

As per a senior official of SIT, if the Adani case reaches its logical conclusion the business group will be required to pay a fine of approximately Rs15,000 crores (AUD$3 billion)

He further says it’s a “watertight” case. The trail of documents shows how the Adani group diverted Rs 5,468 crores (AUD$1.1 billion) to Mauritius via Dubai after Modi became Indian Prime-Minister.

The officer heading the Ahmedabad branch was raided by Government agencies. He was accused of possessing disproportionate assets. Nothing, however, was proved against him, despite months of investigation.

The two other senior-most officers, who were looking after this case against Adani were forced out of the agency.

The service tenure of the man holding the Enforcement Directorate (ED) when the case was opened also ended abruptly. The Ahmedabad ED investigators were hot on the trail of Adani at that time……..

Conclusion

Gautam Adani is a crony capitalist. Adani’s phenomenal and rapid rise has solely been due to his proximity with the political powers in India.

Modi, the Indian Prime Minister, ensures that wrongdoings and malpractices of Adani business house go unpunished in India.

In return, Adani finances Modi’s political party, the BJP, through large scale cash donations, in which the majority goes unreported.

Modi is acting like a marketing director of Adani on his foreign trips and trying his best to get lucrative deals for Adani group globally…….

Australians should, therefore, say a firm no to Gautam Adani’s coal project in their country. If Australian politicians do not listen, then the Australian media and citizens need to rise up on serious issue.

Neither Australia nor the world needs more polluting coal plants, when environment friendly, cost effective alternatives are available in abundance.

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September 1, 2017 - Posted by | General News

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