Adani Gas denies PNGRB 'fraud' charge in CGD-IX

Vol 23, PW 5 (16 Jan 20) People & Policy

Adani Gas (AGL) chief Suresh Manglani is confident the PNGRB will accept its explanation sent by December 9 (2019) about why it failed to disclose the details of its corporate restructuring during CGD-IX.

Speaking to this report, Manglani strongly denied allegations of "fraud" blaming a "miscommunication" by Adani Gas during its corporate restructuring overseen by the National Company Law Tribunal (NCLT) in 2018. Manglani claims the PNGRB was not informed about the restructuring as there was no change in the company’s promoters and "no outsider" was brought in.

"Only the intermediary layer Adani Enterprises was removed so the Adani family has direct control and supervision over the CGD business," he explains. Manglani adds the PNGRB wanted AGL to go through the PNGRB for the NCLT restructuring.

"As a group we are always in complete compliance with regulatory requirements and have zero tolerance for any regulatory non-compliance," he said. "Our duty was to update them while restructuring."

Insisting that AGL is completely transparent, Manglani said the PNGRB is yet to respond to AGL's response. "We believe our reply closes the matter," he adds.

Not so, believes an observer. "Given the unusually strong language used by the (PNGRB) notice," he says.

"It won't be easy for AGL to respond to the specific points raised and hard to believe one reply will close the matter." Directly handling AGL’s case is PNGRB chairman DK Sarraf and member commercial Satpal Garg.