Adani Group faces US probe over alleged Iranian LPG imports through Mundra port; company's shares take a hit
PTC Web Desk: Shares of several Adani Group companies took a hit on Tuesday after a report in The Wall Street Journal claimed that US prosecutors are investigating whether the group imported Iranian liquefied petroleum gas (LPG) into India through its Mundra port in Gujarat. The report said this could be a violation of US sanctions on Iran, sparking controversy and impacting investor confidence.
The report alleged that certain LPG tankers linked to Adani’s operations may have used AIS spoofing, a method where vessels manipulate tracking data to hide their true location or origin. According to experts, this tactic is commonly used to bypass sanctions and avoid detection when trading with restricted countries like Iran.
What is the controversy?
The core of the controversy revolves around whether the Adani Group knowingly imported Iranian LPG, which is restricted under US sanctions. The US has made it clear that any country or company trading with Iran’s oil or petrochemical sector risks facing secondary sanctions. The report by The Wall Street Journal suggested that tankers made repeated trips between the Persian Gulf and Mundra port, and exhibited signs of trying to hide their route — something often seen when ships attempt to bypass sanctions.
The US Justice Department is said to be reviewing the activities of several LPG tankers that may have delivered cargoes to Adani Enterprises. The investigation, according to the report, is still in early stages and no formal charges have been announced.
Adani Group's response
The Adani Group issued a strong denial, calling the allegations “baseless and mischievous.” The company said it did not process any cargo from Iran at any of its ports, including Mundra. It also denied owning or operating any ships tied to Iran or handling any Iranian-flagged vessels. In a detailed statement, a spokesperson from Adani Enterprises said: “Any suggestion that Adani Group entities are knowingly in contravention of US sanctions is strongly denied. The report appears to be based on incorrect assumptions and speculation.”
The company further clarified that the LPG shipment mentioned in the report came from Sohar, Oman, not Iran, and that the transaction was handled by third-party logistics providers. Adani added that it does not control or track the vessels involved in such shipments, especially those not directly contracted by them.
The group also maintained that LPG is a very small part of its overall business and that all LPG imports are carried out in full compliance with Indian and international laws, including US sanctions. The suppliers, the statement said, are well-known international companies who ensure the products are not from sanctioned countries.
Stock market reaction
Despite the company’s denials, the market reacted negatively to the news. Shares of Adani Enterprises dropped by 2.2%, while Adani Ports declined 2.5%. Other group firms like Adani Total Gas, Adani Green, Adani Power, and Adani Energy Solutions also saw losses between 1% to 2%. The benchmark Nifty 50 index fell by 0.4%.
This isn’t the first time the Adani Group has been in the spotlight. In recent years, it has faced scrutiny over alleged bribery and fraud in securing solar energy contracts and misleading investors during fundraising in the US. In November last year, US authorities reportedly investigated Gautam Adani and his nephew Sagar Adani for such claims. The group denied those allegations as well and said it would seek legal action if needed.
- With inputs from agencies
