US Investigates Adani Group Over Alleged Iranian LPG Shipments
| 2025-06-03
Adani Enterprises firmly denied any intentional involvement in sanctions evasion or trade of Iranian-origin LPG.
The US Justice Department is reportedly probing Adani Group over suspected imports of Iranian LPG via Mundra port, despite the group's firm denial.
The Wall Street Journal reported on 2 June that US prosecutors are examining the movements of several tankers allegedly connected to shipments of Iranian LPG to Mundra port in western India, which is operated by the Adani Group. The investigation is part of broader scrutiny into potential violations of US sanctions on Iran.
Citing sources familiar with the matter, the report highlights that US authorities are reviewing the activities of vessels allegedly involved in obscuring their routes to conceal the origin of cargo. These included a Panama-flagged tanker renamed Neel, which is suspected of loading LPG in Iran while its identification system showed it docked in Iraq.
According to the report, satellite imagery from April 3 contradicted the vessel's declared location, placing it at an Iranian terminal instead of Iraq's Khor al Zubair port. The ship later delivered cargo to India through Sohar, Oman, with Indian customs records showing Adani Enterprises imported a similar shipment on 17 April, valued at just over USD 7 million.
Adani Group Denies Allegations
In response, Adani Group issued a strong denial, calling the allegations “baseless and mischievous”. A company spokesperson stated, “We categorically deny any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG.”
The group maintained it was not aware of any ongoing investigation by US authorities and emphasised that all transactions adhered to international and domestic regulations. It also said that the LPG trade represents a minor part of its operations, comprising just 1.46% of Adani Enterprises’ consolidated revenue for the 2024–25 financial year.
“The WSJ’s story appears to be based entirely on incorrect assumptions and speculation,” Adani said in a filing to Indian stock exchanges. “Any suggestion that Adani Group entities are knowingly in contravention of US sanctions on Iran is strongly denied.”
The company clarified that it does not own or operate any of the vessels cited and relies on third-party logistics providers. It added that the shipment referenced in the Wall Street Journal article was a standard commercial deal, contracted through a reputed supplier, with all documentation indicating Sohar, Oman, as the port of origin.
Shipping Irregularities Cited
The Wall Street Journal report pointed to suspicious behaviour in several tankers allegedly connected to Adani's import chain. These include manipulation of automatic identification systems (AIS), a maritime tracking mechanism, to mask port calls in Iran and misreport locations.
At least three other tankers, including vessels previously flagged by US authorities for suspected sanctions evasion, reportedly delivered cargo to Adani’s Mundra port. Some showed discrepancies between AIS data and satellite imagery, while others had links to companies on a US Senate watchlist.
Market Impact
The reports have led to market fluctuations for Adani Group companies. On 3 June, shares of Adani Enterprises, Adani Ports & SEZ, and other affiliated entities fell between 1% and 2.7%. Adani Ports’ stock saw the sharpest drop of 2.72% following the publication of the investigation.
Despite the financial jitters, Adani Group reiterated that it does not handle any Iranian cargo and maintains a policy of not managing or facilitating ships associated with Iran or its flag.
Ongoing Legal Challenges
The reported investigation into Iranian imports coincides with separate legal issues involving the conglomerate. In April, The Wall Street Journal reported that the US Department of Justice had unsealed charges against Gautam Adani, his nephew Sagar Adani, and six other executives. They were accused of orchestrating over USD 250 million in bribes to win solar energy contracts in India.
Additionally, the US Securities and Exchange Commission has filed civil complaints against the Adanis for alleged violations of federal securities laws. According to Bloomberg, negotiations with the US government over those charges have intensified and could lead to a settlement in the near future.
Context: US Sanctions on Iran
The United States maintains comprehensive sanctions against Iran, including restrictions on its oil and gas exports. Companies found importing Iranian petroleum products without the appropriate exemptions may face severe penalties, even if based outside the US.
The allegations, if substantiated, could have significant implications for the Adani Group, one of India's largest infrastructure and energy conglomerates, with growing international partnerships and exposure to global markets.
For now, the Adani Group continues to reject any claims of wrongdoing, stating that it operates “in full compliance with all applicable laws and regulations”. The outcome of the US investigation, if confirmed, could shape future scrutiny of Indian corporate ties with sanctioned nations.
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