Defense Business and Industry

India investigates Adani Defence for alleged tax evasion on missile parts imports.

Indian authorities are investigating Adani Defence Systems and Technologies, part of the Adani Group, for allegedly evading import taxes on missile components valued at approximately $9 million. The Directorate of Revenue Intelligence claims the company misclassified parts intended for short-range missiles, which attract tariffs, as exempt long-range missile components. Although Adani has provided requested clarifications, the implications of this investigation are significant, given the potential penalties exceeding $18 million, which represent a substantial portion of the company’s revenue. This scrutiny comes amid broader regulatory challenges faced by the Adani Group, emphasizing the ongoing need for stringent compliance in India’s burgeoning defense sector while raising concerns about the integrity of supply chains in national security.

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