- The Tamil Nadu government has approved an investigation into allegations of a multi-crore coal import scam involving the Adani Group and others.
- The Directorate of Vigilance and Anti-Corruption (DVAC) has initiated a preliminary inquiry into allegations of irregularities in tender conditions and coal imports, causing significant losses to the state government.
- The sanction to DVAC was accorded under provisions of Section 17A of the Prevention of Corruption Act, 1988
- This investigation is based on a complaint by Arappor Iyakkam, an organization advocating for transparency in governance.
- Evidence suggested that tender conditions were altered post-2011 to favour certain firms, including Adani.
- The Comptroller and Auditor General (CAG) found that turnover requirements for tenders were increased significantly, benefiting a select few firms.
- It was also alleged that tenders were awarded at inflated prices, with proof from the Indonesian government confirming market rates.
- Poor quality coal imports further led to inefficient power generation and additional losses.
Dig Deeper: Read about the mandate of the Directorate of Vigilance and Anti-Corruption and its correspondent organisation at the central level.
