The United States Department of the Treasury on Monday announced a $275 million settlement with Gautam Adani’s Adani Enterprises over alleged violations of American sanctions on Iran, reported Reuters.
According to the Treasury Department’s Office of Foreign Assets Control, also known as OFAC, Adani Enterprises purchased shipments of liquefied petroleum gas, or LPG, from a Dubai-based trader that claimed the supplies came from Oman and Iraq.
US authorities alleged that the LPG shipments had actually originated from Iran. The Treasury Department said the settlement resolves Adani Enterprises’ potential civil liability tied to 32 apparent violations of US sanctions rules, reported Reuters.
Adani Enterprises has not admitted wrongdoing as part of the settlement. The company has not yet issued a detailed public response on the Treasury announcement. The settlement amount of $275 million ranks among the larger sanctions-related civil agreements involving a major Indian corporate group.
What did US Treasury allege?
According to OFAC, the shipments were arranged through a Dubai-based trading company that presented the LPG cargoes as exports from Oman and Iraq. US authorities alleged that the products actually came from Iran. The Treasury Department said the shipments entered transactions connected to the US financial system, triggering sanctions concerns under American law.
The United States maintains strict sanctions on Iran’s energy exports. The US has repeatedly warned companies and traders against transactions involving Iranian oil, gas, and petroleum products. OFAC said companies are expected to carry out strict due diligence on suppliers and cargo origins before completing such deals.
The Treasury Department statement came just days after another major legal development involving Gautam Adani in the United States. Last week, the US Securities and Exchange Commission settled a separate civil lawsuit against Adani over allegations tied to a bribery scheme involving Indian government officials. Court records showed that settlement still requires court approval.
Allegations against Gautam Adani
At the same time, the United States Department of Justice is reportedly close to dropping related criminal fraud charges against Gautam Adani, according to two sources familiar with the matter quoted by Reuters. The possible move comes amid discussions involving Adani Group’s investment plans in the United States.
The report said Gautam Adani has promised to invest around $10 billion in the US economy. The details of those planned investments have not yet been publicly disclosed. Neither the Justice Department nor Adani Group has officially confirmed the reported discussions regarding the criminal case.
The Adani Group runs businesses in ports, energy, airports, mining, logistics, and infrastructure. Since early 2023, the group has faced several investigations and allegations from international agencies and firms. Even after legal and regulatory challenges, Adani Group companies continued to grow their business in India and other countries. Gautam Adani remains one of Asia’s richest businessmen and plays a major role in India’s infrastructure and energy sectors.