Gautam Adani under new scrutiny from US prosecutors, reports WSJ

Gautam Adani under new scrutiny from US prosecutors, reports WSJ

U.S. prosecutors are investigating whether Gautam Adani's companies imported Iranian liquefied petroleum gas into India through their Mundra port, the Wall Street Journal reported on June 2.

A WSJ investigation found tankers traveling between Mundra in Gujarat and the Persian Gulf exhibited traits experts say are common for ships evading sanctions, the report said.

The U.S. Justice Department is reviewing activities of several LPG tankers used to ship cargoes to Adani Enterprises, the WSJ said, citing people familiar with the matter.

Reuters could not immediately confirm the report.

"Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG," a company spokesman told the WSJ in a statement. "Further, we are not aware of any investigation by U.S. authorities on this subject."

"The WSJ’s story appears to be based entirely on incorrect assumptions and speculation. Any suggestion that Adani Group entities are knowingly in contravention of US sanctions on Iran is strongly denied. Any assertion to the contrary would not only be slanderous but also deemed to be an intentional act to injure the reputation and interests of the Adani Group. The rights of Adani Group entities and personnel in this regard are expressly reserved.

"By policy, the Adani Group does not handle any cargo from Iran at any of our ports. This includes any shipments originating from Iran or any vessels operating under the Iranian flag. Additionally, the Adani Group does not manage or facilitate any ships whose owners are Iranian. This policy is strictly adhered to across all our ports," said an Adani spokesperson.

"The shipment referred to in the WSJ’s story was handled through a routine commercial transaction via third-party logistics partners and was supported by documentation identifying Sohar, Oman, as the port of origin," added the spokesperson.

It is important to note that, of Adani Enterprises’ consolidated revenue of over $11,727 million in FY24-25, the revenue from the LPG segment amounted to just $171.2 million – barely 1.46% of the total, said the Adani spokesperson.

The U.S. Department of Justice and the U.S. Attorney's Office in Brooklyn did not immediately respond to Reuters request for comment.

U.S. President Donald Trump said in May that all purchases of Iranian oil or petrochemical products must stop and any country or person buying any from the country would be immediately subject to secondary sanctions.

Any inquiry into Adani would come months after U.S. authorities indicted Adani and his nephew, Sagar Adani, alleging they paid bribes to secure power supply contracts, and misled U.S. investors during fund-raising in the United States.

Adani Group has called the accusations "baseless" and vowed to seek "all possible legal recourse".

"The timing of the WSJ’s story clearly betrays an intent to adversely influence the DoJ indictment against Adani," said the Adani spokesperson on June 2.