Washington: Indian billionaire Gautam Adani, known for his close ties with Prime Minister Narendra Modi, is once again under scrutiny in the United States, marking a fresh challenge in his ongoing efforts to rebuild his image abroad after the damaging Hindenburg Research report in 2023.
A recent Wall Street Journal investigation alleges that U.S. prosecutors are examining whether Adani Group companies facilitated the import of Iranian liquefied petroleum gas (LPG) into India via the Mundra Port in Gujarat, potentially violating U.S. sanctions.
The report indicates that tankers traveling between the Persian Gulf and Mundra Port showed behavioral patterns typically associated with ships attempting to evade sanctions, including tampering with the Automatic Identification System (AIS), which helps track a vessel's location. Experts cited by the WSJ noted that several tankers linked to Adani Enterprises, the flagship firm of the group, are under review by the U.S. Department of Justice.
This comes in the wake of stricter U.S. sanctions announced in May by President Donald Trump, which imposed full restrictions on the purchase of Iranian oil and petrochemicals. Violators were threatened with secondary sanctions.
In a statement to the Bombay Stock Exchange, Adani Enterprises strongly denied the allegations, calling the report “baseless and damaging.” The company asserted it is unaware of any investigations by U.S. authorities and emphasized its policy of not handling Iranian cargo at any of its ports.
According to the WSJ, satellite imagery and AIS data analysis conducted through Lloyd’s List Intelligence suggest that an LPG tanker, SMS Bruce, allegedly linked to the Adani Group, was docked at Iran’s Tombak terminal in April 2024. While the ship's location was not visible in satellite imagery from Iraq’s Khor al-Zubair port, a vessel with a matching profile appeared at the Iranian facility.
Adani Enterprises clarified that SMS Bruce and similar vessels are not owned or operated by the group and that the cargo mentioned was managed by a third-party logistics partner, with documentation showing it originated from Sohar, Oman—not Iran.
This isn't the first time Gautam Adani has faced legal trouble in the U.S. Last year, he was reportedly named in a case involving alleged bribery and fraud. U.S. federal prosecutors accused him of paying $250 million in bribes to secure contracts expected to yield $2 billion in profits over two decades, and of concealing these activities.
Despite strong denials from Adani, the allegations have sparked concern over the intertwining of Indian business and politics, particularly given his longstanding ties to Prime Minister Modi. Their relationship dates back to Modi’s tenure as Chief Minister of Gujarat in the early 2000s, when Adani played a key role in rallying industrial support for Modi during a politically fraught period.
In 2023, short-seller firm Hindenburg Research released a damning report accusing the Adani Group of stock manipulation and accounting fraud spanning decades. The report also implicated Adani's brother, Vinod Adani, in operating a web of 37 offshore shell companies allegedly used for money laundering.
Interestingly, Hindenburg Research ceased operations in early 2025, an event some linked to the fallout of the Adani report.
Adani’s business empire, currently valued at $169 billion, spans ports, airports, and renewable energy. However, controversies have plagued the group both in India and abroad. In Australia, its Carmichael coal mine has faced stiff resistance over environmental and labor concerns, while past incidents in Gujarat have also raised red flags.
With investigations ongoing in the U.S. and past allegations resurfacing, questions about corporate transparency, regulatory oversight, and political patronage in India are once again in the spotlight.
