India Probes Adani Defence Over $9M Missile Parts Tax Evasion

Indian authorities have launched an investigation into Adani Defence Systems and Technologies, a subsidiary of billionaire Gautam Adani's conglomerate, for allegedly evading import taxes worth $9 million on missile components by misclassifying short-range missile parts as long-range components to claim exemptions. The Directorate of Revenue Intelligence (DRI) began the probe in March 2025, focusing on non-explosive parts imported from Russia, Israel, and Canada, which are subject to a combined 28% import and local tax but were declared as exempt. Adani Defence, which supplies missiles, drones, and small arms to Indian security forces, imported approximately $70 million worth of such components since January 2024, including $32 million from Russia. Company representatives stated that the DRI sought clarifications and that all required documents have been submitted, claiming the issue is closed from their side, while government sources indicated that Adani executives admitted to misclassification during questioning. If proven, the tax evasion could result in a liability of $18 million, including penalties, which is substantial relative to Adani Defence's 2024–25 revenue and profits. The investigation adds to ongoing regulatory scrutiny faced by the Adani Group amid other allegations related to securities norms.