New Delhi: Adani Defence, the defence arm of Gautam Adani’s Adani Enterprises, is facing an investigation for alleged tax evasion. The Directorate of Revenue Intelligence (DRI) has launched a probe into allegations that the company evaded ₹77 crore ($9 million) in import duties on components for short-range missiles. This development marks the latest legal challenge for the Adani Group, which is already under scrutiny for alleged stock market irregularities and money laundering in coal imports.
Adani Defence, which manufactures missiles, drones, and small arms for the Indian armed forces, has been under investigation by the DRI since March this year, according to a Reuters report citing government sources. The primary allegation is that the company misclassified imported parts for dutiable short-range missiles as parts for long-range missiles, which were exempt from taxes, in order to evade customs duties.
Adani’s Response
In a statement, the Adani Group clarified that the DRI had only sought clarifications on certain imports and that a response has been provided with supporting documents. “The issue stands closed from our end,” a spokesperson added. However, the company did not specify whether the matter was settled by paying the alleged dues or a penalty.
Serious Allegations
A government source revealed that during the investigation, Adani executives admitted to the misclassification of the imported parts. If the allegations are proven, the company could be liable to pay the evaded tax of ₹77 crore plus a 100% penalty, bringing the total to approximately ₹154 crore ($18 million). This is a significant amount for Adani Defence, which had a revenue of ₹633 crore ($76 million) in the 2024-25 fiscal year.
The investigation pertains to imports from countries like Russia and Israel. The Indian government only granted tax exemptions for short-range missile parts in September 2025; the current probe focuses on imports made before this rule change.
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