Adani to pay $275 mn in US Iran sanctions settlement:OFAC says the firm ignored red flags over Iranian LPG shipments

Adani Enterprises has agreed to pay $275 million to settle potential civil liability over alleged violations of US sanctions on Iran, according to the US Treasury Department’s Office of Foreign Assets Control (OFAC). The settlement follows an OFAC investigation into the company’s liquefied petroleum gas (LPG) imports between November 2023 and June 2025. During that period, Adani Enterprises allegedly purchased Iranian-origin LPG routed through a Dubai-based trading company that claimed the cargoes originated in Oman and Iraq. OFAC said the company caused US financial institutions to process 32 dollar-denominated payments worth about $192.1 million linked to the shipments. The agency described the violations as ‘egregious’ and said the case was neither voluntarily self-disclosed nor isolated. However, OFAC acknowledged Adani’s subsequent cooperation and remedial measures after the matter surfaced publicly. Discounted LPG triggered compliance risks Adani Enterprises entered the LPG import business in 2023 as it sought to compete with established players in India’s energy market. According to OFAC, the company was looking for discounted cargoes and entered into dealings with a Dubai-based supplier offering low-cost LPG from the Middle East. Internal company records reportedly described the arrangement as involving ‘discounted LPG from the Middle East’ supplied on a spot basis. Although the supplier presented itself as a legitimate intermediary dealing in Omani and Iraqi LPG, OFAC alleged it was effectively acting as a conduit for Iranian-origin fuel. One affiliate linked to the supplier had already been sanctioned by OFAC in March 2023 for dealings involving Iranian petrochemical products. The US agency said Adani did not appear to know about that designation at the time. Suspicious shipping activity raised concerns OFAC said multiple warning signs should have prompted deeper scrutiny by Adani and its affiliates. The agency cited suspicious maritime behaviour by vessels involved in the shipments, including manipulation of Automatic Identification System (AIS) signals, unexplained “dark periods” in vessel tracking, illogical shipping routes, and frequent changes in vessel ownership, names, and flags. In one instance, a shipment was declared as loaded in Sohar, Oman, despite the port lacking facilities for exporting fully refrigerated LPG at the time. The regulator also flagged irregularities in shipping paperwork, including inconsistent certificate numbering, outdated templates, and delays in issuing documents after shipments had already departed. OFAC further noted that the LPG prices offered to Adani were significantly below prevailing market rates, something it said should have prompted enhanced due diligence. “This case embodies the adage: if a deal is too good to be true, it probably is,” the agency said. Banks raised questions over the cargo origin According to OFAC, one payment linked to the shipments was temporarily halted in February 2024 after a bank raised concerns about whether the cargo originated in Iran rather than Oman or Iraq. The Dubai supplier later redirected payment instructions to another bank account and allegedly provided additional shipping documents that OFAC described as apparently falsified. Despite repeated concerns from third parties and financial institutions, OFAC said Adani largely relied on shipping paperwork and assurances from the supplier rather than conducting broader sanctions-related investigations. Adani suspended LPG imports after reports surfaced The company suspended all LPG imports in June 2025 following public reports alleging links to Iranian-origin cargoes. Adani also hired US legal counsel and launched an internal investigation. OFAC said the company cooperated extensively by sharing findings, responding promptly to requests for information, and implementing compliance reforms across its corporate structure. OFAC calls violations ‘egregious’ OFAC said the statutory maximum penalty in the matter exceeded $384 million but was reduced to $275 million after considering mitigating factors, including the company’s cooperation and corrective action. The agency nevertheless concluded that Adani acted recklessly by ignoring repeated red flags tied to the shipments. OFAC also alleged the transactions undermined US sanctions policy aimed at restricting Iran’s energy exports and limiting revenue flows linked to Tehran’s nuclear and regional activities. The case is among the most significant sanctions-related enforcement actions involving an Indian corporate entity in recent years.