HC requests that authorities check into claims that electricity firms have overcharged

 HC requests that authorities check into claims that electricity firms have overcharged

The court had previously been told by CPIL's attorney that the DRI had discovered 40 power firms in March 2016 that had overcharged for coal imports from Indonesia.

In order to discover the truth and take necessary action against the guilty corporations, the Delhi High Court on Tuesday ordered authorities to "carefully and expeditiously" investigate claims of over-invoicing of imports by different power producing companies in India.

While addressing two petitions submitted in 2017 by the nonprofit Center for Public Interest Litigation (CPIL) and former bureaucrat and social activist Harsh Mander, the top court issued its ruling. Given the particular characteristics of these instances, this Court determines that it is reasonable to order the respondents to promptly and thoroughly investigate the petitioners' complaints in order to determine the truth and, if applicable, take legal action against the firms that violated the law. Recognizes. In a 54-page ruling, a panel of Justices Suresh Kumar Kait and Neena Bansal Krishna said.

Advocate Prashant Bhushan on behalf of CPIL requested that a Special Investigation Team (SIT) look into the Directorate of Revenue Intelligence (DRI) report on many private power producing businesses engaging in excessive billing be conducted. In order to give the impression that businesses are paying more on imports than they really are, over-invoicing entails exaggerating the worth of products or services. Over-invoicing is a common tactic used to avoid paying taxes or customs fees.

In his petition, Mander requested that the Central Bureau of Investigation (CBI) either form a Special Investigation Team (SIT) headed by a former Supreme Court judge or look into instances of electricity firms over-invoicing, as recorded by the DRI. It has being demanded that they do so. In this instance. In addition, he asked the Power Ministry and the Revenue Department to mandate that the international market value be declared in the bill of lading or shipping document while submitting the paperwork to the Customs Authority of India (CAI). Give the Reserve Bank of India (RBI) instructions to mandate that, on any bill of lading for import into India, banks must disclose the international market price in order to provide credit or a discount.

DRI's attorney said that while the agency is making every effort to finish the investigations quickly, they are very complicated and time-consuming because of the scope of the cases, which include many phases and several nations. Several procedures were ongoing before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and other forums, according to the court's notice of the status report submitted by the DRI. It said that the preliminary investigation in the first case has been finished, and the CBI has been notified that two cases have been filed against the guilty firms.

It said that both incidents are still under investigation. The court had previously been told by CPIL's attorney that the DRI had discovered 40 power firms in March 2016 that had overcharged for coal imports from Indonesia. According to CPIL, coal and other necessary equipment for India's power production are purchased from Original Equipment Manufacturers (OEMs) by means of a foreign middleman that is a fully owned or controlled subsidiary of Indian power firms.

The bills produced by intermediate businesses on Indian power units are exaggerated "to the extent of nearly 400 per cent," but the OEMs' invoices accurately represent the cost of the product. There is a claim that Indian power firms pass on the unlawfully increased expenses they bear to customers in the form of higher prices on energy use.