Adani group says Vinod Adani is part of promoter group

Vinod Adani, the little known elder brother of Adani group founder Gautam Adani, is part of the promoter group, the conglomerate has said after questions were raised about his status following short seller Hindenburg Research naming him prominently in its scathing report on the Adani group.

"We would like to submit that Gautam Adani and Rajesh Adani are individual promoters of various listed entities within the Adani group and Vinod Adani is an immediate relative of the individual promoters," the group's flagship Adani Enterprises said in a stock exchange filing on Thursday.

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Accordingly, as per the applicable Indian regulations, "Vinod Adani is part of the 'promoter group' of various listed entities within the Adani group."

In response to Hindenburg questioning the role of Vinod Adani, 74, in the Adani group where it alleged "brazen stock manipulation and accounting fraud" and use of offshore shell companies to inflate stock prices, the apples-to-airport conglomerate had in January said that "Vinod Adani does not hold any managerial position in Adani listed entities or their subsidiaries and has no role in their day to day affairs."

"We reiterate that any transactions by the Adani portfolio companies with any related party have been duly identified and disclosed as related party transactions in compliance with Indian laws and standard and have been carried out on arm's length terms," it had said.

Hindenburg Research had alleged that Vinod Adani was responsible for creating and managing a vast network of offshore shell entities meant for stock parking, market manipulation and laundering money, to help the conglomerate's companies maintain their appearance of financial health.

The group has denied all Hindenburg allegations, calling them "malicious", "baseless" and a "calculated attack on India".

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Vinod Adani is widely reported to be working out of Dubai in the United Arab Emirates. Regulatory filings show he is a Cypriot national.

When Adani group bought Swiss giant Holcim AG's stake in Ambuja Cements and ACC, the deal was completed via a Mauritius-based entity called Endeavour Trade and Investment.

In the filing, Adani group said the fact that Vinod Adani was part of the promoter group had been submitted to Indian regulatory authorities from time to time in various disclosures.

"Further, the fact that Endeavour Trade and Investment Limited (an entity controlled by Vinod Adani), the acquirer of ACC Limited and Ambuja Cements Limited, belongs to the Adani group has been disclosed in the public offer document," it added.