Adani Group Investigation: US Probes Alleged Illegal LPG Imports via Mundra Port
One of India’s largest business conglomerates, the Adani Group, is once again entangled in an international controversy. A recent report by The Wall Street Journal has levelled serious allegations against Gautam Adani’s company, bringing the Adani Group investigation into the spotlight. The report claims that the US Department of Justice is investigating whether the Adani Group illegally imported liquefied petroleum gas (LPG) from Iran via Gujarat’s Mundra Port. This revelation has not only raised questions about the group’s credibility but has also led to a sharp decline in its listed companies’ share prices. Let’s take a closer look at the entire issue.
The Wall Street Journal Report:
In its latest investigation, The Wall Street Journal revealed that US prosecutors are monitoring the movements of several LPG tankers associated with Adani Enterprises. These tankers reportedly exhibited suspicious behaviours commonly used to evade international sanctions. Specifically, the Adani Group investigation is focused on ships operating between the Persian Gulf and Gujarat’s Mundra Port.
According to the report, US investigative agencies are trying to determine whether the Adani Group violated American sanctions by importing LPG from Iran. Back in May 2024, then-US President Donald Trump had imposed strict sanctions on the purchase of oil and petrochemical products from Iran. Under these sanctions, any company or country that purchases such products from Iran could face US penalties.
One particular tanker named SMS Bros, registered under the Panamanian flag, was highlighted in the report. The vessel was reportedly seen in April 2024 at Iraq’s Khor Al-Zubair port, but satellite imagery later showed it docked at an LPG terminal in Tonbouk, Iran. Experts suggest that such tankers often tamper with their Automatic Identification System (AIS) to conceal their location and identity, which is a common tactic to avoid sanctions.
Adani Group’s Response: “Allegations are Baseless”
The Adani Group has completely denied the allegations linked to the Adani Group investigation. In a filing to the Bombay Stock Exchange (BSE), the group stated:
“The Wall Street Journal report is entirely baseless and misleading. We do not engage in any violation of international sanctions. We neither trade in Iranian LPG nor do we handle such shipments at any of our ports.”
A spokesperson for Adani Enterprises also clarified that they have not received any query or notice related to the Adani Group investigation from US agencies. The group claimed that tankers like SMS Bros were booked by third-party logistics partners and had departed from Sohar Port in Oman, not Iran.
Additionally, the Adani Group reiterated its policies:
- None of its companies operate Iranian-owned ships.
- No Iranian goods are loaded or unloaded at any Adani port.
- All shipments are handled by third-party logistics partners, as documented.
The group also suggested that such reports might be part of a conspiracy aimed at damaging their reputation and negatively impacting their stock prices.
Impact on the Stock Market
Following the Adani Group investigation report, the group’s listed companies saw significant losses in share value. On 3 June 2025, during morning trading, shares of 8 out of 10 Adani Group companies declined by up to 2%. The impact on some key companies was as follows:
- Adani Enterprises: Fell to ₹2,452.70 on the BSE.
- Adani Ports and Special Economic Zone: Dropped by 1.74% to ₹1,442.50.
- Adani Green Energy, Adani Total Gas, Adani Energy Solutions, Ambuja Cements, and NDTV: Also saw declines.
However, shares of AWL Agri Business and ACC Ltd. recorded slight gains. The drop has sparked anxiety among investors, especially as the group has faced multiple controversies in the past.
Adani Group’s History of Controversies
This is not the first time the Adani Group investigation has come into focus. Gautam Adani and his companies have been embroiled in several controversies previously. Notable incidents include:
1. Hindenburg Research’s Explosive Report (January 2023)
In January 2023, US short-seller firm Hindenburg Research published a sensational report accusing the Adani Group of:
- Manipulating the shares of its seven listed companies, resulting in an alleged illegal gain of $100 billion.
- Vinod Adani, Gautam Adani’s brother, operating 37 shell companies for money laundering and stock manipulation.
- Violating Indian and international regulatory norms.
Following the report, the Adani Group’s market value fell by over $150 billion, and Gautam Adani’s personal wealth declined by $80 billion. The group termed the allegations “false and malicious” and threatened legal action. Hindenburg Research shut down its operations in early 2025, after which there were no major developments in the case.
2. US Bribery Case (November 2024)
In November 2024, the US Attorney’s Office in New York’s Eastern District accused Gautam Adani, his nephew Sagar Adani, and six others of paying $265 million (approx. ₹2,236 crore) in bribes to win a solar energy contract in India. The allegations also claimed that the group failed to disclose this to American investors.
The Adani Group rejected the accusations, calling them completely false and politically motivated. They asserted that the company complies with all applicable laws and would pursue legal remedies.
3. Alleged Meeting with Trump Administration
According to a Bloomberg report, Adani Group representatives met officials from the Trump administration in May 2025. The purpose of the meeting was allegedly to seek dismissal of criminal cases against Gautam Adani. The Wall Street Journal also mentioned this meeting, but no concrete outcome has been reported.
Impact on India-US Relations
The Adani Group investigation is not only affecting the group’s business operations but also raising questions about India-US trade and diplomatic relations. Gautam Adani is widely seen as a close ally of Indian Prime Minister Narendra Modi, and opposition parties have often raised concerns about their association. The Hindenburg Research report and now The Wall Street Journal’s investigation have added fuel to these allegations, intensifying political debates in India.
Many analysts believe the investigation could impact India’s business environment and investor confidence. The Adani Group plays a crucial role in infrastructure, energy, and port development across India, and such controversies could hinder its projects.
Also Read
