ibnlive » Business

Feb 27, 2010 at 05:23pm IST

Adani MD arrested for evading customs duty

Ahmedabad/Mumbai: CBI has arrested Rajesh Adani, Managing Director of Adani Enterprises, a part of the Rs 26,000 crore Adani group, on charges of evasion of customs duty to the tune of Rs 80 lakh.

"CBI arrested Rajesh Adani, one of the directors of the Adani Exports (now named Adani Enterprises)," agency spokesperson Harsh Bhal said on Saturday.

The anti-corruption branch of CBI Goa has registered a case against him and nine customs officials. The case was also registered against Adani Exports and Ganesh Benjoplast. Reacting to his arrest, Adani group has said till date no case or show cause notice was given to Adani regarding the case.

ADANI BROTHERS: Rajesh Adani is the younger brother of group chairman Gautam Adani.

"Adani Enterprise Ltd petroleum products division had made arrangements, in the normal course of business, to import certain petroleum products in 2005-06 and 2006-07 on behalf of licence and permission holders," the company said in a statement.

These licence and permission holders were responsible for fulfilling all formalities and payment of duties, it said.

Adani, who was arrested on Friday from Ahmedabad, has been admitted to Gandhinagar civil hospital after he complained of high blood pressure, hospital sources said.

CBI Joint Director (Western Region) Rishiraj Singh in Mumbai that "Adani had in the year 2006-07 imported naptha, a petroleum product, and did not pay customs duty in Goa."

A case was registered in January 2008 by the Goa Anti-Corruption Bureau of the CBI, which is looking into whether any other employees of the diversified group are also involved.

The company said, "Till date no show cause notice has been served by the customs department against the company AEL or Rajesh Adani in respect of these transactions".

"Rajesh Adani was not responsible for any day-to-day business operations. The company is surprised and pursuing the matter with the assistance of its legal counsel", it said.

Rajesh is the younger brother of group chairman Gautam Adani, who recently completed a successful Initial Public Offer of another group company Adani Power.

The Adani Group deals with commodities trading, distribution of natural gas and port operations.

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