Adani Enterprises’ defence wing, Adani Defence Systems and Technologies, has found itself in hot water again, this time over allegations of import tax evasion related to missile parts.
According to an exclusive report by Reuters, India’s Directorate of Revenue Intelligence (DRI) began investigating the matter in March 2025, following claims that the company had incorrectly claimed tax exemptions on certain imported components.
The development came as another regulatory headache for the Adani Group, which is already dealing with scrutiny across its coal, ports, and infrastructure businesses.
Now, with the defence arm being investigated, the spotlight is back on questions of corporate governance and transparency, and what this means for oversight in India’s growing defence sector.
What’s behind the latest probe?
The DRI probe is focusing on missile parts imported for short-range surface-to-air systems, and that’s where things seem to have gone off track.
Investigators say Adani Defence allegedly misclassified these parts to claim tax exemptions that were actually meant only for long-range missile components, something that clearly went against customs rules at the time.
According to government sources, the company may have dodged tariffs worth around ₹770 million (about $9 million).
To put that in perspective, that’s over 10% of Adani Defence’s annual revenue and more than half its profit for the 2024–25 financial year.
The investigation hasn’t just highlighted possible misclassification, it’s also sparked wider discussions about how duty exemptions are handled and what kind of documentation is required for such sensitive defence imports.
In response, the Adani Group said it has already provided all the necessary clarifications and documents to the authorities and considers the issue “closed.”
But the DRI’s investigation is still ongoing, and past cases, like those involving Samsung and Volkswagen, suggest that if wrongdoing is confirmed, penalties could be hefty, potentially reaching up to $18 million once 100% penalty provisions for duty evasion are factored in.
Interestingly, the missile parts in question aren’t explosive; they are non-lethal components imported from Russia, Israel, and Canada, and they make up a significant chunk of Adani’s $70 million defence imports since January 2024.
Adani’s regulatory hurdles continue
Beyond the current investigation, the conglomerate is still dealing with older cases, including allegations of over-invoicing coal imports that date all the way back to 2014.
Adani has denied any wrongdoing there, and the group has been fighting revenue authorities in court to stop further probes into that issue.
Recently, there has been a bit of relief for Adani Group as India’s markets regulator recently cleared Adani of two charges of stock manipulation, which eased some of the market pressure.
But it’s far from over: more than a dozen other allegations remain on the table, involving things like securities violations, governance lapses, and disclosure gaps.
Taken together, all these cases show just how much regulatory attention India’s biggest business groups are now attracting, a reflection not only of their massive scale and influence, but also of the tighter compliance environment emerging in the country.
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