US Investigates Adani Group Over Suspected Iranian LPG Shipments via Mundra Port

The US Department of Justice is currently looking into whether the Adani Group, a major player in India’s business landscape, imported liquefied petroleum gas (LPG) from Iran through its Mundra port, potentially violating US sanctions. A recent publication by The wall Street Journal highlights this investigation, citing sources familiar with the matter.

The inquiry centers on several LPG tankers making trips between the Persian Gulf and Mundra in Gujarat. These vessels exhibited behaviors often linked to attempts at sanction evasion. As an example,one tanker named SMS Bros—flying a Panamanian flag but later renamed Neel—was tracked via satellite images to an LPG terminal in Iran while its Automatic Identification System (AIS) data suggested it was docked elsewhere. This vessel also displayed irregular routes and inconsistencies in port documentation.

According to the WSJ report, some shipments were traced back to Sohar in Oman and were managed by third-party logistics firms. Notably, one of these ships is flagged by the US Energy department as being associated with Iranian oil exports.

In response to these allegations, the Adani Group has firmly denied any wrongdoing. They labeled the WSJ’s claims as “baseless and mischievous,” asserting that they do not engage with cargo from Iran or vessels registered there at their ports.

This investigation unfolds against a backdrop of heightened tensions regarding US-Iran relations under President Donald Trump’s management. Trump had previously warned that any entity purchasing oil or petrochemicals from Iran would face severe penalties—including exclusion from doing business within the United States—as part of his broader strategy aimed at crippling Iranian oil exports.

Interestingly enough, while China continues importing over a million barrels of Iranian oil daily without important repercussions from US sanctions, American authorities coudl still target chinese state-owned enterprises if necessary.

additionally, alongside this scrutiny over potential sanctions violations, Adani Group faces other legal hurdles; Gautam Adani himself has been indicted along with his nephew on bribery charges related to power contracts—a case that remains unproven in court thus far.

The Justice Department has recently shifted its focus towards prioritizing cases involving money laundering and sanctions evasion tied to drug cartels rather than white-collar crimes like foreign bribery or certain sanction breaches. This change might alleviate some pressure on companies like Adani Group amid ongoing investigations into their practices.

following news reports about these allegations, shares for various Adani companies took a hit; for example, Adani Enterprises saw a drop of around 2.2%, while other subsidiaries experienced declines ranging between 1% and 2%. The Nifty 50 index also fell by 0.4%, marking significant losses for firms within this conglomerate during early trading hours.Efforts made by media outlets seeking comments from both Gautam Adani and representatives at the US Attorney’s Office have gone unanswered so far; similarly unresponsive was the Justice Department when approached for statements regarding this matter.

Mundra port itself plays an essential role in this unfolding story—it was highlighted back in 2018 when both Adani group and Gujarat state Petroleum Corporation announced new gas terminals capable of processing five million tons of LNG annually—a project inaugurated by Prime Minister Narendra Modi himself alongside two newly established gas pipelines connected to it.

To navigate through these turbulent waters effectively amidst ongoing investigations into their operations abroad—the Wall Street Journal noted that the Adani Group has engaged American legal counsel aimed at lobbying government officials for favorable resolutions moving forward.