Adani Group calls WSJ’s Iran LPG report 'mischievous', denies sanctions evasion

Adani Group on Monday strongly denied allegations that its companies were involved in the import of Iranian liquefied petroleum gas (LPG) in violation of US sanctions, following a report by The Wall Street Journal on the conglomerate’s shipping practices.

In a regulatory filing submitted to stock exchanges, Adani Enterprises, the flagship company of Adani Group, rejected what it described as “baseless and mischievous” allegations published in the WSJ article.

"Further, we are not aware of any investigation by US authorities on this subject."

The report said US prosecutors are probing whether LPG tankers delivered Iranian fuel to Adani-run Mundra port by circumventing sanctions using deceptive shipping practices.

“The Adani Group categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG,” the company said. “By policy, the Adani Group does not handle any cargo from Iran at any of our ports.”

The group added that it was unaware of any investigation by US authorities and said any suggestion to the contrary was “speculative” and based on “incorrect assumptions.”

The WSJ report detailed a Journal-led investigation that tracked tankers, including the Panamanian-flagged SMS Bros, which allegedly docked in Iran’s Tonbuk terminal despite transmitting location data suggesting it was in Iraq.

Satellite imagery and maritime tracking data reportedly indicated several tankers may have spoofed their positions to obscure their Iranian origin.

One such shipment, ultimately received at Mundra port in April 2024, was listed in Indian customs records as LPG cargo worth $7 million, the Journal said.

Shipping documents claimed the fuel originated in Sohar, Oman, though the vessel did not appear to dock there, according to the report.

An Adani spokesperson told the Journal the shipment was arranged by a third-party logistics provider and that the group has “fulfilled the duties of a bona fide importer.” The group reiterated that it does not own, operate, or monitor the vessels used for its imports.

The allegations come as Adani remains under legal scrutiny in the United States. In November, US prosecutors charged Gautam Adani, the group’s founder and chairman, with conspiracy and securities fraud related to alleged $250 million in bribes to Indian officials for solar contracts, charges the company also denies. The group is reportedly lobbying the Trump administration to drop the charges.

The WSJ said at least four tankers tied to shipments to Mundra showed signs of obfuscation or were listed in previous reports linking them to Iranian petroleum exports. US sanctions prohibit such trade, and President Donald Trump last month said that “any country or person” buying Iranian petrochemicals would face “secondary sanctions.”