Adani Enterprises Confirms Third US Investigation Into Iranian Petroleum Transactions
Mumbai: Adani Enterprises Ltd disclosed on Tuesday that a United States government agency is actively investigating the company's transactions to determine whether it engaged in trading Iranian petroleum products that were under American sanctions. This development marks the third parallel US probe targeting the expansive ports-to-power conglomerate, adding to existing legal challenges.
Voluntary Outreach and Information Request
The flagship firm of the Adani Group stated in a detailed regulatory filing that it initiated voluntary contact with the US Office of Foreign Assets Control (OFAC) following a report by The Wall Street Journal on June 2, 2025. That report indicated US prosecutors were examining whether Adani imported Iranian liquefied petroleum gas (LPG). The company did not specify the exact timing of this outreach.
Subsequent to this voluntary engagement, OFAC issued a formal request for information (RFI) to Adani Enterprises through its legal counsel on February 3. The RFI explicitly stated that the agency is conducting a civil investigation into the company's transactions processed through US financial institutions that may have involved, directly or indirectly, Iran or interests of persons subject to US sanctions against Iran.
Adani Enterprises emphasized its commitment to full cooperation, stating, "The Company is voluntarily engaging and fully cooperating with OFAC and will supply the requested information." OFAC operates as part of the US Department of the Treasury, responsible for administering and enforcing economic and trade sanctions globally.
Expanding US Legal Scrutiny
This investigation represents the third major US inquiry into the Ahmedabad-based conglomerate. Previously, the US Department of Justice (DoJ) filed a criminal suit, while the US Securities and Exchange Commission (SEC) initiated a civil suit against billionaire promoter Gautam Adani and his nephew Sagar Adani. These cases allege that they paid bribes to unnamed Indian government officials and failed to disclose this information to US investors during capital raising activities.
Neither the Adani Group nor OFAC provided additional comments regarding the timing of the voluntary outreach when approached for clarification. The company's stock reflected market concerns, with shares of Adani Enterprises closing 1% lower at ₹2,227.55 on the BSE on Tuesday, contrasting with a 0.25% gain in the benchmark Sensex. The disclosure was made during regular market hours.
Background and Previous Denials
The Wall Street Journal's June 2025 investigation focused on a group of LPG tankers traveling between Adani's Mundra port in Gujarat and the Persian Gulf. The report highlighted suspicious behavior typical of vessels attempting to obscure their activities, including discrepancies in tracking data and satellite imagery. For instance, one tanker's data placed it at Khor al Zubair port in southern Iraq on April 3, 2024, while satellite images showed a similar-looking vessel at an LPG terminal in Tonbuk, Iran on the same day. This ship eventually delivered LPG to Mundra port.
The Adani Group vehemently denied these allegations at the time, asserting that it does not engage in trade with any entities facing US sanctions. The company further clarified that LPG trade constitutes a minor segment of its overall business, accounting for merely 1.5% of Adani Enterprises' FY25 revenue, which exceeded ₹1 trillion.
In a precautionary move described as "out of abundant caution" and "as part of its cooperation efforts," Adani Enterprises ceased all LPG imports effective June 2, 2025, coinciding with the publication of the WSJ report. This strategic decision underscores the company's proactive approach to addressing regulatory concerns while maintaining its stance of compliance with international sanctions.
