Adani Faces Scrutiny Over Iranian LPG Shipping Claims

The Adani Group is once again under scrutiny after a Wall Street Journal report linked the conglomerate to possible violations of international sanctions through the alleged shipment of Iranian liquefied petroleum gas (LPG). The report, published Monday, June 2, detailed suspicious tanker movements between the Gulf and the Mundra Port in western India, operated by Adani.

The report claimed the tanker activities resembled known sanction-evasion tactics, prompting the US Department of Justice to investigate potential violations involving shipments to Adani’s flagship port. The Indian conglomerate, led by billionaire Gautam Adani, swiftly rejected the allegations as “baseless and mischievous.”

In a stock exchange statement, Adani Group maintained it does not knowingly engage in trade with Iran. “We categorically deny any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG,” the company said, adding it neither owns nor operates the vessels mentioned and performs strict due diligence and KYC checks on all suppliers.

This comes amid a turbulent period for Adani, who, along with his nephew Sagar Adani, was indicted in the US in late 2024 over bribery and investor deception. The fallout saw Kenyan President William Ruto cancel two major contracts with the group: a KSh 240 billion deal to upgrade Jomo Kenyatta International Airport and a KSh 96 billion power line project.

Whistleblower Nelson Amenya, who exposed the Kenya-Adani deals, has recently resurfaced, warning of a potential new government plan to transfer control of JKIA to a Dubai-based firm. As the Adani Group battles international scrutiny, its standing in global infrastructure projects continues to face serious challenges.