4 days ago
Adani Faces U.S. Inquiry Over Alleged Iran LPG Imports
U.S. prosecutors are investigating whether companies linked to Gautam Adani imported Iranian liquefied petroleum gas into India, potentially violating American sanctions. The probe focuses on shipments received at the Adani-controlled Mundra port in Gujarat, with tankers suspected of using deceptive practices to obscure their origin. This development follows a prior indictment against Adani and associates for alleged bribery and securities fraud.
The U.S. Department of Justice, through its Eastern District of New York office, is examining maritime activities involving tankers that may have transported Iranian-origin LPG to Adani Enterprises. Investigators are scrutinizing whether these vessels employed tactics such as falsified automatic identification system data and forged documentation to mask the true source of the shipments. A Wall Street Journal investigation suggests that LPG shipments imported by Adani from Oman may have actually originated from Iran, using complex third-party logistics to mask the true source.
A spokesperson for the Adani Group has denied any deliberate involvement in sanctions evasion or trade with Iranian-origin LPG, stating the company is unaware of any U.S. investigation. The group maintains that it conducts thorough due diligence on all imports and complies with applicable laws.
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This inquiry adds to the legal challenges facing Adani. In November 2024, U.S. authorities indicted Gautam Adani and his nephew, Sagar Adani, alleging they paid over $250 million in bribes to Indian government officials to secure power supply contracts and misled U.S. investors during fundraising activities. The indictment also accuses other individuals, including former employees of a Canadian institutional investor, of obstructing investigations by deleting evidence and providing false information to authorities. The Adani Group has dismissed those accusations as 'baseless' and committed to pursuing all legal remedies.
The Adani Group, integral to India's economy with a valuation of around $150 billion, has faced multiple allegations, including a 2023 report from Hindenburg Research accusing it of securities violations. Despite seeking legal avenues to dismiss the charges and leveraging political support from Republican legislators amid Trump's relaxed foreign bribery enforcement, the ongoing sanctions-related probe poses a significant risk to Adani's efforts to clear his and his conglomerate's name.
The investigation into potential sanctions violations underscores the complexities of international trade compliance, especially for conglomerates operating across multiple jurisdictions. As the U.S. continues to enforce sanctions on Iran, companies engaged in global trade must navigate a landscape fraught with legal and regulatory challenges.
