After last year's government bribery allegations, billionaire Gautam Adani’s ports-to-real-estate conglomerate is reportedly facing fresh scrutiny from US authorities—this time over its liquefied petroleum gas (LPG) imports linked to West Asia.
According to a report by The Wall Street Journal (WSJ), US prosecutors are reviewing ships linked to Adani Enterprises, the group’s flagship company, for allegedly importing Iranian LPG into India via the Adani-operated Mundra Port.
The WSJ report states that the US Department of Justice is investigating several LPG tankers suspected of shipping cargoes to Adani Enterprises. The United States imposes sanctions on exports of Iranian fossil fuels as part of its effort to curb Tehran’s nuclear programme.
Most of these sanctions were imposed after the first Trump administration withdrew from the Joint Comprehensive Plan of Action (JCPOA), accusing Iran of uranium enrichment violations.
Since the Gaza conflict, Washington has imposed further sanctions on Iran, which is seen as a key backer of groups such as Hamas, the Houthis, and Hezbollah.
Last month, President Donald Trump posted on social media, "Any country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions. They will not be allowed to do business with the United States of America in any way, shape, or form.”
Allegations Against Adani
The WSJ report alleges that the Adani Group may have used forged documents and manipulated data to transport Iranian LPG to India via its supply chain.
One key vessel named in the investigation is the SMS Bros, now renamed Neel. The ship reportedly displayed signs of activity typically associated with concealment, such as manipulating AIS (Automatic Identification System) data. While AIS logs showed it docked in Iraq on April 3, 2024, satellite images instead placed the ship at Tonbuk, Iran. The vessel later delivered cargo to Mundra Port, with shipping documents listing the origin as Sohar, Oman—though no AIS evidence supports a stop there.
The report notes that LPG imports are a small but growing part of Adani’s business, contributing 1.46% of its $11.7 billion revenue in FY25.
In response, an Adani spokesperson said the company “categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG.” The firm said it used a third-party logistics provider and has fulfilled all importer obligations, adding that it does not own, operate, or track vessels.
Ongoing Bribery Case
This report emerges as the Adani Group was reportedly preparing to expand its US investments, despite the bribery case against Gautam Adani and his nephew Sagar Adani.
Under the Biden administration, the US Department of Justice and the Securities and Exchange Commission had indicted the Adanis and other executives of their green energy company for allegedly bribing officials to secure power supply contracts and misleading US investors during fundraising.
However, earlier this year, President Trump rolled back enforcement of overseas bribery laws. The Adanis have hired top legal firms—Kirkland & Ellis and Quinn Emanuel—and their lawyers met with prosecutors in March seeking to have the case dropped.
