Adani Enterprises shares are likely to be in the spotlight today after a Reuters report revealed that Indian authorities are investigating the company’s defence arm for alleged import tax evasion related to missile components. The probe marks the latest regulatory scrutiny faced by the Adani Group, led by billionaire Gautam Adani.
According to Reuters, India’s Directorate of Revenue Intelligence (DRI) began investigating Adani Defence Systems and Technologies Ltd in March 2025 for allegedly evading tariffs worth ₹77 crore (approximately $9 million). The company is accused of misclassifying certain imported missile components as duty-exempt, allowing it to avoid paying customs duties and taxes.
Adani Defence, one of the smaller businesses within the diversified Adani conglomerate, manufactures missiles, drones, and small arms primarily for India’s security forces. The alleged amount of tax evaded is significant, equating to more than 10% of Adani Defence’s FY25 revenue of $76 million and over half of its annual profit.
A government source cited by Reuters said that during the investigation, Adani executives admitted to misclassification of some imported parts, though further details were not provided. Typically, companies found guilty in such cases are required to pay the unpaid duties along with a 100% penalty, which could bring the total liability to around $18 million for Adani Defence.
Responding to the report, an Adani Group spokesperson stated that the DRI had only “sought clarifications” regarding certain imports based on its interpretation of customs rules. “The clarifications have been provided with supporting documents. The issue stands closed from our end,” the spokesperson added, without disclosing whether any payments were made to resolve the matter.
The investigation has not been previously reported, and its timing comes as Adani Group continues to rebuild investor confidence following past scrutiny related to financial and regulatory issues.