Billionaire Gautam Adani’s brother Vinod Adani has reportedly stepped down from three companies associated with the Carmichael mine operated by Adani in Australia. Vinod Adani was under increased scrutiny after allegations of wrongdoing were levelled against him and Adani Group by US-based short seller Hindenburg in January this year.
Although the Adani Group strongly objected to the allegations raised by Hindenburg, Supreme Court has ordered an investigation into the matter. Notably, Vinod Adani’s resignations took place just days before the apex court ordered the probe, according to Bloomberg.
Market regulator Securities and Exchange Board of India (SEBI) is also looking into the transactions between Adani Group and Vinod Adani to see whether it’s disclosed as per regulatory requirements. In the Hindenburg report, it was claimed that Vinod Adani plays a central role in many fraudulent financial practices within the conglomerate helmed by his brother.
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According to Adani Group, although Vinod Adani is part of the promoter group, he does not hold any managerial positions in the group’s public companies or its subsidiaries. The ambiguity around Vinod Adani’s role within the conglomerate has also been noted by ratings agencies. In a recent note, S&P Global Ratings’ analysts said, “Any transactions with the brother and entities where he is a beneficiary should be disclosed as related-party transactions.”
The Bloomberg report mentions that Vinod Adani stepped down from three companies— Carmichael Rail and Port Singapore, Carmichael Rail Singapore Pte. and Abbot Point Terminal Expansion—all of which are closely associated with the Adani group’s Carmichael mine project in Australia.
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