Boris Johnson’s Brother Resigns as Director of Adani-Linked Firm

Tom Metcalf and Harry Wilson, Bloomberg News

Jo Johnson, U.K. transport minister, departs following a weekly meeting of cabinet ministers at number 10 Downing Street in London, U.K., on Tuesday, Sept. 4, 2018. Both Prime Minister Theresa May and opposition Labour Party leader Jeremy Corbyn found themselves under fire as British lawmakers prepared to return to work this week. Photographer: Chris J. Ratcliffe/Bloomberg , Bloomberg

(Bloomberg) -- Jo Johnson, a former Conservative minister and brother of former prime minister Boris Johnson, has stepped down as director of Elara Capital Plc, a UK firm named in a short seller report about the Adani group.

Johnson resigned from the role this week, according to a regulatory filing. He was appointed in June 2022.

Meghnad Desai, an India-born academic and former Labour Party politician, told Bloomberg he was also considering his role as a director of Elara.

“I am currently making my own inquiries with Elara to find out what the situation was,” Desai said in an email. “As a Non Exec Director, I am not involved in the day to day business.”

Elara was named by US-based Hindenburg Research in its report raising concerns over the financial health of Adani Group. The short seller’s allegations of financial manipulation at Adani — denied by the Indian firm — have set off a stock rout across the Adani companies.

Elara Capital’s website describes itself on its website as a “full-service investment bank,” noting it has raised funds for several Indian corporates. It has offices in New York, Singapore, Mumbai, Ahmedabad and London, according to its website.

Jo Johnson said in a statement to the Financial Times, which first reported the news, that he had joined Elara to contribute to “UK-India trade and investment ties” and had “received assurances from Elara Capital that it is compliant with its legal obligations and in good standing” with regulators.

“I now recognise that this is a role that requires greater domain expertise in specialised areas of financial regulation than I anticipated and, accordingly, I have resigned from the board,” he said.

Johnson and a representative for Elara — which didn’t respond to a request for comment from the FT — didn’t immediately respond to requests for comment from Bloomberg News.

(Adds Meghnad Desai details.)