New Delhi: At least 21 international organisations have written a letter to Chief Justice D.Y. Chandrachud and the Supreme Court, urging them to expedite the resolution of a case filed by the Directorate of Revenue Intelligence (DRI) against Adani Group firms.
The letter was sent in response to the recent revelations published in the Financial Times allegedly showing that the Adani Group was involved in a massive coal scam.
FT reported that Gautam Adani’s company is “suspected of fraud by selling low-grade coal as high-value fuel”. Adani has rejected all accusations of inflating prices.
In March 2016, the Directorate of Revenue Intelligence initiated a probe against a few Adani Group companies for alleged overvaluation of coal imports from Indonesia between 2011 and 2015.
“Recent reporting in the Financial Times has provided fresh and detailed evidence of the passing off of “low-quality coal as far more expensive cleaner fuel” by the Adani Group in transactions with Tamil Nadu’s Tangedco, providing fresh evidence on “allegations of a long-running coal scam,” said the letter.
“This evidence suggests that Adani has obtained “bumper profits at the expense of air quality” by repeatedly passing off low-quality coal purchased at an average price of $28 per tonne as higher quality coal to Tangedco at an average price of $86 per tonne. Considering that the Adani Group is one of India’s biggest importers of coal, the scale of the alleged scam is likely to be very large, with significant impacts on both the government exchequer and to electricity bills of the people of India,” said the letter.
The letter cited the apex court’s judgment in M.K. Ranjitsinh and Others v. Union of India, saying that India’s commitment to transitioning to non-fossil-fuels was “not just a strategic energy goal but a fundamental necessity for environmental preservation.” It emphasised that the Adani case involves the “dirtiest and most polluting coal being burned, and under false representation by the corporation concerned.”
More than two million people in India die each year due to outdoor air pollution, the letter said, adding that other studies have found significant increases in child mortality within hundreds of miles of coal-fired plants.
These plants also contribute to approximately 15% of India’s man-made emissions of fine particulate matter, 30% of nitrogen oxide, and 50%of sulfur dioxide. “As the honorable justices are aware, burning dirty coal releases excessive toxic emissions and requires burning more of it to produce the same amount of energy, causing harm not only in India but around the world,” it said.
Therefore, the NGOs, including the Australian Centre for International Justice, Banktrack, Bob Brown Foundation, Eko, Extinction Rebellion, Friends of the Earth Australia, among others, have urged the top court to take up this matter as soon as possible.
Reproduced below is the full text of the letter.
§
To,
The Hon. Chief Justice of the Supreme Court of India,
It is an honor to address the highest court of India, especially in the context of your recent landmark judgment in the M K Ranjitsinh and Others v. Union of India casei expanding fundamental rights in India to include the right to be free from adverse impacts of climate change. This also follows another landmark judgment in February 2024, where you directed governments in India to follow the “broad and all-encompassing” definition of forests as laid down in the 1996 judgment in the TN Godavarman case. Judgments of this nature continue to demonstrate the leadership of the Indian judiciary in the defense of our planet and its environment.
We, the undersigned international organizations concerned with the threat of climate change are writing to you to request your attention on a related matter of some urgency. Recent reporting in the Financial Times has provided fresh and detailed evidence of the passing off of “low-quality coal as far more expensive cleaner fuel” by the Adani Group in transactions with Tamil Nadu’s Tangedco, providing fresh evidence on “allegations of a long-running coal scam.” This evidence suggests that Adani has obtained “bumper profits at the expense of air quality” by repeatedly passing off low-quality coal purchased at an average price of $28 per tonne as higher quality coal to Tangedco at an average price of $86 per tonne. Considering that the Adani Group is one of India’s biggest importers of coal, the scale of the alleged scam is likely to be very large, with significant impacts on both the government exchequer and to electricity bills of the people of India.
In line with Paragraph 17 of your judgment in M K Ranjitsinh, which stated that India’s commitment to transitioning to non-fossil-fuels was “not just a strategic energy goal but a fundamental necessity for environmental preservation,”iv we, too, stand firmly against the continued use of fossil fuels. This particular case involves the dirtiest and most polluting coal being burned, and under false representation by the corporation concerned. As the story cites, more than 2 million people are killed in India each year by outdoor air pollution, and other studies have found significant increases in child mortality for hundreds of miles around coal-fired plants. Coal-fired plants also account for roughly 15 percent of India’s man-made emissions of fine particulate matter, 30 per cent of nitrogen oxide, and 50 percent of sulphur dioxide.v As the honorable justices are aware, dirty coal releases excess toxic emissions, and more of it needs to be burned to produce the same amount of energy. This causes harm not just in India, but around the world.
In our understanding, this matter has been brought before the honorable court by India’s Directorate of Revenue Intelligence (DRI), as part of a larger docket of cases involving similar practices by a range of entities, including those linked to the Adani Group (Senior Intelligence Officer vs. Sanjay Agarwal SLP (Crl.) 4821 of 2023). Speedy hearing and resolution of this case will go a long way in holding all those who have done wrong accountable, and set a firm precedent that will deter such action. Conversely, delays in ensuring wrongdoers are brought to justice will perpetuate the harms and proliferate the wrongful practices of these entities.
In light of the public circulation of fresh evidence, we urge you to take up this matter as soon as possible. We hope that your alacrity will provide yet another example of the Supreme Court of India leading the way on this very important area of jurisprudence.
Yours sincerely,
(in alphabetical order)
1. Australian Centre for International Justice
2. Banktrack
3. Bob Brown Foundation
4. Culture Unstained
5. Eko
6. Extinction Rebellion
7. Friends of the Earth Australia
8. London Mining Network
9. Mackay Conservation Group
10. Market Forces
11. Money Rebellion
12. Move Beyond Coal
13. Seniors for Climate Action Now!
14. Stand.earth
15. Stop Adani
16. Sunrise Movement
17. Tipping Point
18. Toxic Bonds
19. Transparency International Australia
20. W&J Nagana Yarrbayn Cultural Custodians
21. Queensland Conservation Council
