Indian authorities have launched an investigation into Adani Enterprises’ defence unit over alleged import tax evasion on missile components, in the latest regulatory scrutiny facing billionaire Gautam Adani’s conglomerate.
According to two government sources with direct knowledge of the matter, India’s Directorate of Revenue Intelligence (DRI) began probing Adani Defence Systems and Technologies in March for allegedly evading 770 million rupees ($9 million) in customs duties. The company reportedly claimed certain missile components were exempt from import taxes.
Adani Defence, a subsidiary of Adani Enterprises, manufactures missiles, drones, and small arms primarily for India’s security forces.
In a statement, Adani Group said the DRI had only “sought clarifications” regarding the imports, which had been duly provided with supporting documents. “The issue stands closed from our end,” a company spokesperson said, without clarifying whether any payments were made.
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A government source told Reuters that Adani executives admitted to misclassifying imported components during the probe, though further details were not disclosed.
The alleged $9 million in unpaid taxes represents more than 10% of Adani Defence’s 2024–2025 revenue of $76 million, and over half its profit. Typically, companies found guilty of such violations are required to pay the evaded duty along with an equivalent penalty, which could bring the total liability to $18 million.
The investigation has not been previously reported.
