A relative of Gautam Adani turned a bankrupt firm into a nearly $1 bn company

livemint.com:

₹344.1 crore after having not handled any business in 2022—chiefly on account of getting more business from the Adani conglomerate. Incidentally, Rakesh Ramanlal Shah, chairman and managing director of Diamond Power Infrastructure, is the brother-in-law of Gautam Adani, India’s second-richest person. Shah, 71, is married to Priti, sister of Gautam Adani.

But in recent announcements of contracts secured from Adani group companies, Diamond Power specifies in exchange filings that the work did not fall under the ambit of related-party transactions. To be sure, transactions with a company owned by a brother-in-law do not fall under the category of related-party deals. But industry experts say that in the spirit of the law, companies should disclose such relations.

The annual reports of the Adani group’s 10 publicly listed companies and Diamond Power do not disclose any relationship between Rakesh Shah and Gautam Adani. At least one chartered accountant suggested that regulatory bodies need to expand the existing classification of related parties. “Under Indian accounting and (ministry of corporate affairs) rules, brother-in-law does not come under related-party transactions.