CRONY capitalism is one of the hallmarks of the current Union government. The Enforcement Directorate (ED), which acts as a mouthpiece and tool for a regime that cosies up to capitalists, has once again become active in Kerala. In this context, it would be appropriate to examine the real picture of the Modi-ED-Adani nexus, which has largely gone unnoticed.

Ahmed Buhari is a prominent businessman in the country. A native of Kilakarai in the Ramanathapuram district of Tamil Nadu, his family roots are in the state, but as an NRI businessman, his primary business activities and headquarters are centred in Dubai and Chennai. The Buhari family's Buhari Coal & Oil Group, one of the leading business groups in Tamil Nadu, has decades of operational experience in sectors such as energy, construction, shipping, real estate, and foreign coal trading. Their primary focus is on the energy sector.

On May 29, 2006, they started a company called Coastal Energen Pvt Ltd in Tuticorin, Tamil Nadu. The goal was to establish a 1,200 MW thermal power plant running on imported coal in Muthiayapuram, Tuticorin. Initially registered under the name Coastal Gujarat Power Company Private Limited, the company was later renamed Coastal Energen for the project. Although the reason for changing the name is unclear, whether it was due to the promoter's name or the change of location, Ahmed Buhari and his establishment did not make it into the government's 'good books', or in other words, they lacked cronyism.

As is the current trend in the country, a businessman without cronyism finds everything he touches becoming a crime. Allegations of over-invoicing related to coal imports were raised against the company. Soon, the CBI arrived. In 2018, the CBI registered an FIR alleging that excessive prices were recorded for Indonesian coal supplied to public sector undertakings like NTPC, thereby generating illegal profits. Subsequently, the ED initiated an investigation under the Prevention of Money Laundering Act (PMLA) for allegedly diverting and laundering over Rs 560 crore. Ahmed Buhari was arrested in March 2022. He spent approximately 31 months in judicial custody without being granted bail.

THE IBC HAIRCUT — ANOTHER TACTIC

With the promoter in custody, the projects started with massive investments plunged into financial crisis. Facing huge liabilities (claims totalling over ₹11,000 crore), banks led by the State Bank of India declared the loans as non-performing assets (NPAs). Based on a petition by the banks, Insolvency and Bankruptcy Code (IBC) proceedings were initiated through the National Company Law Tribunal (NCLT) in 2022.

Subsequent events validated the accusation that the IBC introduced by the central government in 2016 is a tool of crony capitalism. The NCLT put the company, burdened with Rs 11,000 crore in liabilities, up for auction. A sale was finalised for a mere Rs 3,330 crore after taking a massive 'haircut' of around 70 percent! And who bought it? A consortium comprising Adani Power and Dikki Alternate Investment Trust! The method seen here is one where a major industrial enterprise built by Ahmed Buhari through his own hard work is crippled using investigative agencies, plunged into a debt trap, and handed over as a cheap bargain to the government's favourites through 'haircut' legislation.

PUBLIC OUTRAGE MUST RISE

Most of the cases brought against Buhari by the ED were later quashed or dismissed by courts. He is continuing a strong legal battle against the takeover of the company at a throwaway price. But who will answer for the losses suffered by him, his family, and his business?

Beyond whether Buhari committed a crime or not, the critical question is whether central agencies are becoming tools functioning according to political interests. According to statistics submitted by the Union Ministry of Finance in Parliament, out of 8,851 cases registered under the PMLA, only 2,396 have reached the courts. Trials have been completed in only 58 of these cases, and convictions were secured in 55 cases involving 124 individuals. This means that less than one percent of all registered cases have resulted in convictions. The vast majority of remaining cases drag on without trials. By misusing investigative agencies solely for their own political gains, the government has truly degraded their credibility. A degraded political drama is unfolding here, protecting those they want while hunting down those they do not. Recognising these facts, a strong democratic resistance and public outrage must rise.