US prosecutors are investigating whether industrialist Gautam Adani’s companies violated US sanctions by importing Iranian petrochemical products into India through Gujarat’s Mundra port, The Wall Street Journal reported on Monday. However, the company categorically rejected any involvement in importing Iranian LPG by evading sanctions, stressing that it was not aware of a probe into the same.
An investigation by the US-based publication found tankers travelling between Mundra port, which is operated by the Adani Ports and SEZ Ltd, and the Persian Gulf, the report said, adding that it exhibited traits experts say are common for ships evading sanctions.
The US Justice Department was reviewing the activities of several LPG tankers used to ship cargoes to Adani Enterprises, the report said, citing people familiar with the matter.
In response, an Adani Enterprises spokesperson said, “Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG. Further, we are not aware of any investigation by US authorities on this subject.”
Last month, US President Donald Trump said all purchases of Iranian oil or petrochemical products should stop and threatened to impose secondary sanctions on countries buying oil from the Islamic Republic.
The development came after US authorities prosecuted the 62-year-old industrialist and his nephew, Sagar Adani, in November last year, alleging that they paid bribes to secure power supply contracts, and misled American investors during fundraising in the US.
Adani Group had called the allegations “baseless” and vowed to seek “all possible legal recourse”.
ADANI ENTERPRISES DENIES INVOLVEMENT
In a statement, a spokesperson for Adani Enterprises said The Wall Street Journal’s report appeared 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 spokesperson said.
The statement also said that the Adani Group does not handle any cargo from Iran at any of its ports. “This includes any shipments originating from Iran or any vessels operating under the Iranian flag,” it read.
“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,’ it said.
The spokesperson said that the shipment referred to in The Wall Street Journal’s report 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.
“We again state that we do not own, operate or track vessels (including the alleged SMS Bros/Neel) and cannot comment on the current or past activity of vessels we have not contracted and do not control. Whatever the duties and responsibilities of a bona fide importer are, we have fulfilled those,” the statement said.
The spokesperson said even while LPG constitutes a very small and operationally non-material component of the company’s overall revenue, all LPG trade conducted by Adani entities was fully compliant with applicable domestic and international laws, including US sanctions regulations.
