Himachal Pradesh tax officials raid Adani Wilmar unit over GST violations

The Himachal Pradesh State Excise Department has raided a unit of the Adani Wilmar Group in Parwanoo late on Wednesday over allegations of GST violations. The state department officials inspected the carrying and forward (C&F) unit of the company based in Solan.

The officials were reportedly seeking information about input tax credit claims of the company with respect to state operations. According to reports, the inspection was carried out after the company failed to deposit GST collection for more than five years. The officials went through the unit’s documents and other goods in the facility.

Adani Wilmar is a 50:50 joint venture between Adani Group and Singapore-based Wilmar with Fortune Oil one of its key products. The company produces edible oil, pulses, rice and soaps. The company reported its December-quarter results on February 8 with a 16 percent increase in its consolidated profit to Rs 246.16 crore.

In Himachal Pradesh, Adani Group is currently engaged in a standoff with truck operators after they shut down two cement plants following the revision of freight rates. The 57-day long impasse between Gautam Adani owned cement group and truck unions have not ended after both parties failed to reach a consensus on freight rates in fresh talks, slamming the brakes on hopes that two of its cement units shut over the impasse for nearly three months would reopen soon.

The meetings have taken place on intervention of the Congress government, which last week threatened legal action against Adani Group if the plants were not reopened. Around 6,500 truck operators were engaged by the plants at Barmana in Bilaspur district and Darlaghat in Solan.

The unions had agreed to lower freight rates to Rs 10.15 per tonne per km (PTPK) from Rs 11.41-10.58 PTPK earlier. But this was turned down by the two Adani units. Instead, the group proposed rates of Rs 6.5 PTPK and Rs 8.5 PTPK for different vehicles, which is a bit higher from the initial Rs 6 it wanted the operators to charge.

In meetings with CM Sukhvinder Singh Sukhu, the union leaders had agreed to reduce rates to Rs 10.15 PTPK from Rs 11.41-10.58. The Adani Group had shut the cement plants on December 14 citing high transportation costs. The only interim breakthrough that the Chief Minister could make was to make the truck unions agree to deferring transporters’ “Chakka Jam” which had been scheduled for February 4.

According to news reports, the Adani Group wanted to reduce rates and to make them equal to those in the plains. However, unions have reiterated that this was not possible as transportation cost rises in hilly areas due to a variety of factors.

The Gautam Adani-led Adani Group and its companies have come under scrutiny following the Hindenburg Research report alleging money round-tripping. The Group’s stocks witnessed a massive selling spree in a couple of trading sessions. The National Stock Exchange (NSE) placed few stocks of the Adani Group under the ASM framework to curb excessive volatility.