The federal government has not moved to defend Adani, instead calling on Labor in Queensland to vouch for the proponents of the project. The federal government has not moved to defend Adani, instead calling on Labor in Queensland to vouch for the proponents of the project. Company documents suggest Gautam Adani does not ultimately control many of the companies associated with his company's Australian coal developments. Instead his eldest brother, Vinod Shantilal Adani, holds pivotal positions. Vinod has been named in an Indian criminal investigation into the alleged siphoning of $1 billion from Indian shareholders in three Adani companies into offshore accounts. A web of companies that appear to be linked to Adani's coal developments in Australia extends from the low tax regime of Singapore to the tax haven of the Cayman Islands.

Complicating matters is conflicting paperwork, with Indian documents suggesting Adani Enterprises divested its stake in Abbot Point port for $235 million in 2013 to a private Singapore entity for which Vinod is the sole director. Indian billionaire Gautam Adani. Credit:Glenn Hunt But records held by the Australian Securities and Investments Commission, and annual reports for Adani's registered Australian companies, continue to name a publicly listed Indian company, Adani Ports and Special Economic Zone, as the ultimate shareholder for the port. After the revelations, Greens senator for Queensland Larissa Waters is demanding the government investigate "whether all relevant disclosures have been made to Australian regulators". Senator Waters said on Monday: "The federal government needs to urgently investigate who controls the Abbot Point coal terminal and Carmichael coalmine."

"We're talking about the biggest coalmine and the biggest coal port that Australia has ever seen. It's reckless for the government to allow these enormous projects to proceed without even knowing who controls them." She said Environment Minister Greg Hunt would have to approve a change of proponent under national environment law. Mr Hunt said on Monday the opening up of the Galilee Basin was originally a Queensland Labor proposal. "The federal Environment Department has written to Queensland officials seeking advice on how the state government wishes to proceed," he said. "It's now up to Queensland Labor, if they form government, to determine the suitability of all proponents and confirm their proposal for Abbot Point."

Environmental advocates are calling for a moratorium on the expansion of Abbot Point and want a full-scale inquiry into Adani's financial affairs. "A full and proper investigation into the legitimacy of Adani's operations and who owns Abbot Point is clearly needed and the possibility of a royal commission should not be ruled out," 350.org Australia CEO Blair Palese said. Greenpeace reef campaigner Shani Tager said: "The only sensible response to these revelations is a comprehensive investigation into the Adani Group's suitability to operate in Queensland." An Adani spokesman said on Monday that the ownership structure of its lease at Abbot Point had not changed. "Adani again notes that the ownership structure of another component of its mine, rail and port projects- the lease of its terminal at Abbot Point- has not changed, as was communicated to Fairfax on January 21 and again on January 22," he said.

"It is unfortunate that, in selectively quoting Adani's responses of several weeks ago to the story published at the weekend, an impression has been created that a response stating that the ownership structure has not changed as claimed might mean something other than the ownership structure has not changed as claimed. "Adani also notes once more that the unchanged ownership of the lease is consistent with its stated position advised to every relevant regulatory authority in Queensland, Australia, and India." Follow us on Twitter @BusinessDay



