Vinod Adani, the brother of Australian miner and billionaire Gautam Adani, has resigned from three firms connected to the Carmichael project. Vinod Adani came under heightened scrutiny when US-based short seller Hindenburg accused him and the Adani Group of malfeasance in January of this year.
Even while the Adani Group has denied the accusations made by Hindenburg, the Supreme Court has mandated a probe. Bloomberg points out that Vinod Adani's resignations happened only days before the supreme court ordered the investigation.
The Securities and Exchange Board of India (SEBI), the market regulator, is also investigating the transactions between Adani Group and Vinod Adani to see if they were declared in accordance with legal requirements. According to the Hindenburg investigation, Vinod Adani is a key figure in a number of financial fraud schemes carried out by the group led by his brother.
Vinod Adani does not hold any management responsibilities in the firm's publicly traded businesses or its subsidiaries, while being a member of the promoter group, according to Adani firm. Additionally, rating agencies have drawn attention to the uncertainty surrounding Vinod Adani's position within the business. S&P Global Ratings analysts recently said in a note that “Any transactions with the brother and entities where he is a beneficiary should be disclosed as related-party transactions.”
According to the Bloomberg story, Vinod Adani resigned from three businesses that are connected to the Carmichael mining project in Australia, including Carmichael Rail and Port Singapore, Carmichael Rail Singapore Pte., and Abbot Point Terminal Expansion.