Adani Enterprises To Pay $275 Million To Settle US Sanctions Probe Over Alleged Iranian LPG Imports
Kirit Singhania
19 May 2026 9:15 AM IST
Adani Enterprises Limited (AEL) on Monday agreed to pay $275 million to settle potential civil liability with the United States Treasury Department's Office of Foreign Assets Control (OFAC) over apparent violations of Iran-related sanctions linked to imports of liquefied petroleum gas (LPG).
According to OFAC, between November 2023 and June 2025, AEL purchased 35 cargoes of Iranian-origin LPG through a Dubai-based supplier that purported to supply Omani and Iraqi gas, while causing US financial institutions to process 32 dollar-denominated payments totaling approximately $192.1 million.
OFAC alleged that AEL overlooked multiple red flags that should have raised concerns about the true origin of the cargoes, including suspicious vessel movements, manipulation of Automatic Identification System (AIS) signals, questionable shipping documents, and prices significantly below prevailing market rates.
The US authority said AEL had also received warnings from third parties that cargoes linked to the supplier may have originated in Iran. In one instance, the supplier's bank halted payment for a shipment over internal compliance concerns, following which the supplier directed AEL to route the payment through another Dubai-based bank.
OFAC described the case as “egregious” and said AEL acted recklessly despite multiple warning signs that should have prompted additional due diligence. The agency said the company's conduct undermined sanctions objectives aimed at restricting Iran's energy revenues.
OFAC said AEL entered the LPG market in 2023 and sought discounted supplies in a competitive market. It alleged that the company relied on shipping documentation and supplier assurances without sufficiently investigating the risks.
However, OFAC cited mitigating factors including AEL's cooperation during the investigation, its suspension of LPG imports in June 2025 after the allegations surfaced, and the implementation of enhanced sanctions compliance measures across its corporate group. The agency said the settlement was below the statutory maximum civil penalty of $384.2 million after taking these factors into account.
Separately on May 14, 2026, Gautam Adani and Sagar Adani agreed to pay a total of $18 million to settle a securities fraud case filed by the United States Securities and Exchange Commission arising from allegations of bribery and misleading disclosures linked to Adani Green Energy Limited.
The SEC had alleged that the matter involved approximately $265 million in alleged bribes paid to Indian officials to secure solar energy contracts projected to generate over $2 billion over 20 years.
Against this backdrop, the US Department of Justice is also moving to drop all related criminal fraud charges against Gautam Adani after the Adani Group committed to invest $10 billion in US energy and infrastructure projects,