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Adani-Led Firm Slammed for Extorting Rs 1,400 Crore from Rajasthan PSU!

Key Facts:

  • A Jaipur district court found an Adani Group-led coal mining firm guilty of wrongfully charging over Rs 1,400 crore from Rajasthan's state electricity utility.

  • The firm earned these massive transportation charges by "arm-twisting" the state to avoid power shortages.

  • The joint venture was formed with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), but the Adani entity controlled 74% shares and mining operations.

  • The court imposed a fine of Rs 50 lakh on the Adani firm and ordered a government audit of the deal, though the Rajasthan High Court later stayed that audit order.

  • This judgement brought rare scrutiny to private firms profiting from coal blocks allocated to public entities.

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In a landmark judgement, a Jaipur district court ruled against an Adani Group-led coal mining company, accusing it of extorting over Rs 1,400 crore from Rajasthan’s publicly owned electricity firm, the Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). The court criticized the Adani-led joint venture for imposing exorbitant transportation charges under an arrangement formed in 2007 and formalized in a joint venture, where Adani controlled 74% of the shares. The government admitted in court that it had “very humbly” complied with the company’s "arm-twisting" tactics to avoid crippling power shortages, resulting in significant undue financial burden on the state PSU. The court imposed a Rs 50 lakh fine on the firm and called for a Comptroller and Auditor General (CAG) audit of the deal, though the Rajasthan High Court stayed that direction shortly after. This judgement casts a spotlight on the controversial ways private firms have benefited from coal mining contracts meant for public utilities, raising questions about governance and accountability in coal allocations. The dispute, which began in 2020, has brought unprecedented legal scrutiny to Adani’s coal mine dealings in India.



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