Adani Group has strongly denied allegations of violating US sanctions by importing Iranian liquefied petroleum gas (LPG) into India through Mundra Port, amid reports of a US investigation into the matter. The Indian conglomerate stated that it neither handles Iranian cargo nor has any ties with Iranian-owned vessels, calling the allegations “baseless and mischievous.”
US Scrutiny Over Alleged Sanctions Violation
A recent Wall Street Journal (WSJ) investigation revealed that US prosecutors are probing whether Adani Group companies imported Iranian LPG — a direct violation of US sanctions on Iran — through Mundra Port in Gujarat. According to the report, tankers were observed travelling between the Persian Gulf and Mundra, exhibiting behaviors experts associate with sanction evasion tactics.
The US Department of Justice is reportedly examining the activities of several tankers that allegedly delivered LPG cargoes linked to Adani Enterprises. However, the conglomerate has firmly denied any wrongdoing or awareness of an ongoing investigation.
Adani Group's Official Response
In a stock exchange filing and public statement, the Adani Group emphasized that it strictly adheres to international compliance standards, including US sanctions. A spokesperson for the group said:
“The Adani Group categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG. We are not aware of any investigation by US authorities.”
The group clarified that it does not handle any cargo from Iran at its ports, including Mundra Port, and does not facilitate vessels owned or operated by Iranian entities. This policy is “strictly adhered to across all our ports,” the company added.
Clarification on LPG Shipments
The spokesperson further explained that any LPG shipments handled by Adani Enterprises were part of routine commercial transactions through third-party international logistics firms. These shipments were reportedly documented as originating from Sohar, Oman, not Iran.
“We do not own, operate, or track vessels mentioned in the WSJ report, and cannot comment on their current or past activity,” the spokesperson stated.
“All LPG imports comply with Indian and international trade laws, including due diligence and KYC checks to ensure no involvement with sanctioned entities.”
Background: Previous Allegations and Legal Stance
This recent controversy follows earlier scrutiny in November last year when US prosecutors reportedly indicted Adani Group Chairman Gautam Adani and his nephew Sagar Adani over alleged bribery related to power contracts. The group had labeled those allegations “baseless” and vowed legal action.
In the present case, Adani Group reiterated that any claim suggesting deliberate violation of US sanctions is “slanderous and aimed at harming the group’s reputation.”
“The rights of Adani Group entities and personnel are expressly reserved,” the company concluded.
Why This Matters
This development comes at a time of heightened global sensitivity around compliance with US sanctions, especially those related to Iran’s oil and petrochemical sectors. The outcome of this situation could influence not only the reputation of one of India’s largest conglomerates but also the broader perception of India’s port and trade compliance ecosystem.
Key Takeaways
- Adani denies any involvement in importing Iranian LPG or violating US sanctions.
- US prosecutors are reportedly investigating the matter, but Adani says it is unaware of any such probe.
- Mundra Port operations are fully compliant with global trade regulations, according to the company.
- The company reserves legal rights and calls the WSJ report speculative and misleading.
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