Prime Minister Narendra Modi has just praised CBI for taking action against corruption involving political parties in opposition while saying that his government has inherited a legacy of corruption. His party BJP has also released “Congress file”, a video presentation, to tell the country that the Congress has looted Rs48.20 trillion of the hard-earned money of the people. It also figured the coal scam of 1.86 lakh crore.

BJP has also been alleging other non-congress political parties and their leaders of corruption. However, the chief target is Congress. In their desperation, several BJP leaders have been heard telling the country of corruption under “70 years of Congress rule” an utter lie, since the Congress ruled the country only about 54 years, even after including 223 days of the PM Chandrashekhar’s government that the Congress had supported.

Ever since the US-based short seller Hindenburg Research published a damning report on the Adani Group on January 24, 2023, the Congress have been in the forefront in demanding probe into the matter since it was labeled as largest fraud in corporate history. Gautam Adani is known as a friend of PM Narendra Modi and have been alleged his patronage to become third richest man in the world. Modi government has blocked the Congress demand for Joint Parliamentary Probe, apart from his colleagues in the government and leaders in the BJP alleging that the allegation against Adani was “calculated attack on India, its independence, integrity, and quality of Indian institutions, and also the growth story and ambition of India.”

Despite allegation of Modi government’s involvement in favouring Adani, Modi government has continued to favour Adani. The latest example in March auction in which Adani Group won commercial coal auctions for four coal blocks at lowest prices. For one of the blocks he won had only one other bidder.

The auction-based regime was introduced in 2014 which allowed private sector participation, however, it was limited to captivate usage in own end use plants. The sector was opened up for commercial coal mining by private players in 2020 and first ever successful auction of commercial mining was launched by PM Modi on 18.06.2020 and concluded with allocation of 19 coal mines.

Congress had been on the BJP’s line of fire for corruption in coal scam, but corruption in allocation of coal blocks have been a suspect even after 2014, when Narendra Modi became the Prime Minister of India. Even the CAG had raised concern about collusion in coal block auctions through bid-rigging, a form of cartel conduct. It is orchestrated by bidders by agreeing among themselves to eliminate competition.

CAG had flagged, in respect to coal auctions in 2015, the possibility of companies placing multiple bids for the same block through their subsidiaries and joint ventures stifling competition and depressing prices. Later, the Union Ministry of Coal framed a rule to count the subsidiaries and joint ventures as single bidder.

The rule was further changed in 2021 to reduce the minimum number of qualified bidders from minimum three to two. It was done against the recommendation by expert committee to annul the auctions if there were less than three bidders.

As many as 141 coal mines was put on auction in November 2022, with a purpose to kill competition, and the objective was achieved. Only 59 companies participated. Bids were placed for only 36 mines and the total number of bids were 96. At the end of the bidding process on March 9, only 29 coal mines could be bid out.

One of the successful bidder was Adani Group who won three mines at 5.5 per cent revenue share, and the fourth at 7 per cent. However, it should be noted that average revenue share of the winning bids was 22.12 per cent for all 29 mines successfully auctioned.

In three of the four blocks Adani Group won, there were only two bidders. It was possible because Modi government had changed the rules earlier. Congress leader Rahul Gandhi has been alleging for a long time that Modi government has changed the rules to benefit his friend Gautam Adani.
For North West of Madheri coal block, Adani Group had only one other bidder Cavil Mining Private Limited, the chief promotor of Adicorp Enterprises, a company that has been alleged in the Hindenburg report of funneling funds between Adani companies to avoid mandatory related party disclosures. Moreover, Adicorp and Cavil has the same Ahmedabad address in corporate filing. The promotor of both the companies is the same person named Utkarsh Shah, a friend of Gautam Adani. It must also be noted that Cavil Mining has no mining experience. This Cavil Mining also placed bids against Adani group for Gondbahera Ujheni along with Gujarat Mineral Development. Cavil Mining is being led by Adarsh Shah as chairman after death of his father Utkarsh Shah last year.

Adani group won Purunga coal block in competition with a construction engineering firm which was reportedly given orders by Adani Group last year of over Rs6,000 crore. For Dahegaon Gowari coal block Adani group had one other bidder Gangaramchak Mining.

Though the BJP has mentioned coal scam before 2014, the recent evidence shows that Modi government is also involved in coal scams after he came to power. Modi government gave benefit to Adani Group even after publication of Hindenburg report show how the government is hell bent on helping Adani.

Adani Group had reportedly lent Adicorp Rs 622 crore, which gave a loan of Rs608 crore back to a company of Adani Group in 2019-20. Hindenburg report has flagged it suspicious, and said that Adani Group was using Adicorp.

Rahul Gandhi’s demand, in this backdrop, in noteworthy. He has asked, “Who owns Rs20,000 crore invested in Adani shell companies.” A Financial Times report said that “offshore companies linked to the Adanis” invested at least $2.6 billion in the group between 2017 and 2022.

Union Ministry of Finance has said that no detail is available on offshore shell companies owned by Indians, because it is not defined in the Acts administered by the Ministry of Finance.

In the light of new evidences, Modi government’s involvement in corruption cases and Modi-Adani connection is irrefutable. BJP’s and PM’s allegation of corruption on opposition, particularly the Congress, cannot make them clean on corruption. It is therefore bound to emerge as major issue in Legislative Assembly elections of six states in 2023 and Lok Sabha election in 2024.