‘Baseless and mischievous’: Adani Enterprises rubbishes allegations of Iran sanctions violation reported by WSJ

Adani Enterprises Iran

Adani Enterprises Limited on Sunday issued a strong rebuttal to a report published by The Wall Street Journal (WSJ), which alleged that entities within the Adani Group were involved in the trade of Iranian-origin liquefied petroleum gas (LPG) in violation of U.S. sanctions. The conglomerate dismissed the report as “baseless and mischievous,” asserting that the company maintains strict compliance with international regulations.

The WSJ article, authored by Ben Foldy and Dave Michaels, reportedly claimed that certain shipments handled by Adani-linked entities involved LPG sourced from Iran, potentially violating U.S. sanctions.

Adani, however, categorically denied any such involvement and stated that it was not aware of any investigation by U.S. authorities.

“The Adani Group strongly denies these baseless allegations and confirms that it does not handle cargo from Iran at any of its ports,” the company said in its statement filed with the Bombay Stock Exchange (BSE). “This includes no shipments from Iran, no Iranian-flagged vessels, and no Iranian-owned vessels.”

LPG trade and revenue impact

Adani Enterprises emphasized that its exposure to the LPG business is minimal. The segment accounted for only USD 171.2 million in revenue in FY2024–25, representing a mere 1.46% of the group’s consolidated revenue of USD 11.7 billion. Despite its limited financial contribution, the company stated that all LPG operations are fully compliant with domestic and international law, including U.S. sanctions regulations.

Compliance protocols

The conglomerate outlined its comprehensive compliance framework, which includes:

  • Sourcing LPG only from globally reputed suppliers through lawful contracts.
  • Ensuring all counterparties are cleared against the U.S. Treasury’s OFAC sanctions list.
  • Engaging third-party shipping providers that adhere to global compliance standards.
  • Vetting vessel movement history and sanctions compliance using S&P Global’s Market Intelligence Network (MINT) system.

Response to Specific Shipment Cited by WSJ

Addressing the shipment in question, Adani said the cargo originated from Sohar, Oman, and was executed through standard commercial channels involving third-party logistics. The company asserted that it has no ownership, control, or connection with the vessel operators allegedly named in the WSJ article, including “SMS Bros” and “Neel.”

“Any attempt to link us with such entities is misleading and legally untenable,” the statement read. “We reserve our rights to take appropriate action to protect our reputation.”

Business conglomerate stands firm

The Adani Group concluded its statement by reaffirming its commitment to high standards of corporate governance and compliance. It called the WSJ’s allegations “slanderous” and asserted its right to pursue legal remedies if necessary.

The clarification was made publicly available through a regulatory filing with the BSE and is accessible on the company’s official website.

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