Report India’s Adani Group Under Investigation for Violating Iran Sanctions

Mundra port India — The report says LPG shipments to the Mundra port operated by Adani are being investigated (file photo of Mundra port)

India’s Adani Group, which is one of the largest conglomerates and well-known for its port operations, is reportedly under investigation for possible violations of the U.S. sanctions on the Iranian energy industry. President Donald Trump has vowed to crack down on companies in the trade imposing secondary sanctions on anyone trading with Iran for oil and gas.

There has been a lot of attention on India’s energy imports with most of the focus being on its large importation of Russian oil. At times, India has responded to U.S. sanction threats blocking listed shadow tankers while it also has acted to support the insurance market for shadow tankers.

In an exclusive report, The Wall Street Journal is reporting that Adani is now being investigated for a possible role in the importation of Iranian LPG. The newspaper tracks the movements of LPG carriers that it asserts are using well-known evasion tactics including AIS spoofing to disguise lifting and carrying products from Iran.

The Wall Street Journal tracked shipments into the Mundra port in India which is operated by one of the Adani companies. Adani Group and Gujarat State Petroleum Corp highlighted in 2018 the development of the gas terminal in Mundra port. They reported a capacity to handle five million tons of LNG per year and India’s prime minister Narendra Modi traveled to the port to mark the commissioning of two gas pipelines.

Adani responded to The Wall Street Journal denying any “deliberate engagement” to avoid sanctions or illegal trade with Iranian-origin petroleum products. A spokesperson confirmed to the newspaper the company is in the LPG business calling it small but growing for Adani.

The newspaper reports the U.S. Justice Department is investigating the activities of several LPG tankers delivering product to India.

Adani Group is run by Gautam Adani who is the wealthiest person in India and has close ties to Prime Minister Modi. The Wall Street Journal reports his companies are valued at $150 billion.

The company has been accused of other issues in the past but none have been proven. One report said the company was violating Indian securities laws. There have also been unproven allegations of fraud, and bribery.

Adani Group has called the allegations baseless and lies. The Wall Street Journal reports the company hired U.S. lawyers to lobby the U.S. government in hopes of bringing the government investigations to a close.