The U.S. Justice Department is reportedly investigating Indian billionaire Gautam Adani’s business empire over alleged violations of Iran sanctions. The inquiry may significantly escalate the legal troubles already surrounding the industrialist.
A Fresh Allegation Amid Existing Charges
Gautam Adani, Asia’s second-richest man and chairman of the Adani Group, is facing renewed scrutiny from U.S. prosecutors. The Wall Street Journal reports that the U.S. Department of Justice is now investigating whether Adani’s companies illegally imported Iranian liquefied petroleum gas (LPG) into India.
This comes just months after Adani was charged with orchestrating $250 million in bribes to Indian officials to secure solar-power contracts. That case had already put his international reputation under pressure. Now, investigators are exploring whether tankers used by Adani’s businesses violated U.S. sanctions by discreetly transporting Iranian petrochemicals to Mundra port in Gujarat.
While Adani’s spokesperson firmly denies these claims, calling them “baseless,” the U.S. Attorney’s Office in Brooklyn is reportedly expanding its probe, citing patterns typical of sanction evasion in shipping data.
Red Flags
The focus of the investigation is a pattern of suspicious movements by several LPG tankers linked to Adani Enterprises. One particular vessel, the SMS Bros, flagged in Panama, came under focus after its automatic identification system (AIS) showed it was in Iraq on April 3, 2024. However, satellite imagery from the same day revealed it was likely docked in Tonbuk, Iran.
By April 10, documents stated that Adani Global PTE had chartered the same ship to load 11,250 metric tons of LPG from Sohar, Oman. But again, satellite data contradicts the AIS report. No docking occurred in Sohar. The ship later arrived in Mundra, India, where Adani Enterprises accepted cargo valued at over $7 million.
Experts say such tactics, including spoofed AIS data and falsified origin documents, are common methods used to mask Iranian oil shipments. Maritime analysts from Lloyd’s List Intelligence and TankerTrackers.com flagged this voyage as highly suspect.
Though Adani Group insists it used a third-party logistics firm and had no control over the tanker’s operations, investigators remain focused on whether Adani entities knowingly accepted cargo tied to Iran.
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Adani Group response
In response to the Wall Street Journal’s findings, Adani Group issued a firm denial. “Any suggestion that Adani group entities are knowingly in contravention of U.S. sanctions on Iran is strongly denied,” the company said in a filing. They claimed to strictly avoid Iranian cargo or Iranian-flagged vessels at all their ports.
Furthermore, the company stated that they had fulfilled all legal obligations expected of importers and emphasised that any involvement in sanctions evasion would contradict company policy. They also claimed no knowledge of any investigation from U.S. authorities.
Behind the scenes, Adani’s legal team is taking aggressive steps. The group has hired heavyweight law firms like Kirkland & Ellis and Quinn Emanuel. Lawyers met with prosecutors in March 2025, pushing to drop the bribery case that had already created international headlines.
Six Republican members of the U.S. Congress have even come out in support of Adani. They argue that his prosecution runs counter to America’s broader foreign policy goals with India. Former President Trump, who has expressed tough stances on Iran but leniency toward foreign bribery enforcement, also paused certain prosecutions under the Foreign Corrupt Practices Act.
Tanker Activity and Suspicion
Several other LPG tankers linked to Adani’s shipping routes show similar suspicious behaviour. Satellite and AIS data suggest that at least three other vessels regularly sailing to Mundra port masked their true positions or origins.
One ship managed by the same company as the SMS Bros appeared on a bipartisan U.S. Senate list of tankers suspected of transporting Iranian petroleum. Another was even listed in a 2024 U.S. Energy Department report on Iranian exports.
In one unusual instance, a ship reportedly linked to Adani transmitted AIS coordinates showing it was parked on railroad tracks in Iraq. Analysts say this is a clear case of spoofing.
While Adani companies deny ownership or control of these ships, maritime investigators argue that knowing acceptance of illicit cargo, even if done through intermediaries, can still constitute a sanctions violation under U.S. law.
What does this mean for Adani Group
The implications for Gautam Adani and his business empire could be significant. The Adani Group, valued at $150 billion, remains central to India’s infrastructure growth and is deeply intertwined with national politics. His close ties to Indian Prime Minister Narendra Modi have long drawn scrutiny, especially since the Hindenburg Research report in 2023 accused the group of manipulating share ownership.
Although Adani’s firms have rebounded financially since the initial Hindenburg drop, this new wave of allegations may trigger deeper financial and diplomatic fallout. This will be especially true if the Justice Department moves ahead with formal charges.
The U.S. government remains firm on Iranian sanctions. In April, Trump posted on social media that any individual or country buying Iranian oil or gas would face immediate secondary sanctions. They would also be barred from doing business with the United States.
In that context, even indirect or unintentional connections to Iranian petroleum trade can carry steep consequences. As investigations continue, all eyes are now on how the Adani Group navigates these escalating challenges both in court and in global markets.
Written By Fazal Ul Vahab C H
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