Following the news of the U.S. investigation, Adani Group stocks fell across the board
The Adani Group, one of India’s largest business conglomerates, is once again under international scrutiny—this time for its alleged involvement in dealings with Iran. Recent reports suggest that the group may have imported liquefied petroleum gas (LPG) from Iran, a country that faces strict trade sanctions from the United States. These reports have triggered a new wave of investigations, market reactions, and concerns about compliance and ethics.
The U.S. Investigation
On June 2, 2025, a leading American newspaper reported that U.S. prosecutors are investigating whether the Adani Group violated international sanctions by importing LPG from Iran through its Mundra port in Gujarat. The United States has strict rules that prohibit companies from doing business with Iran, especially when it comes to oil, gas, and petrochemical products.
According to the report, satellite images and ship tracking data showed suspicious activities by tankers delivering gas to India. Some ships falsely claimed to load cargo in Iraq or Oman, but satellite imagery showed them docking in Iranian ports. These ships later arrived at the Mundra port operated by Adani. This raised red flags among American authorities, who are now trying to determine whether Adani knowingly received Iranian fuel in violation of sanctions.
Adani Group’s Response
The Adani Group has strongly denied all the allegations. In public statements, the company said it never imported LPG from Iran and that it was not aware of any investigation by U.S. authorities. It called the reports “baseless and mischievous,” and claimed that any LPG it handled came from legally approved sources.
The company further explained that all LPG imports were managed by third-party suppliers. Adani said it only provided port services and had no role in checking the origin of the cargo. It added that its contracts included strict clauses that required suppliers to follow international laws, including sanctions.
Impact on Adani’s Stocks
Following the news of the U.S. investigation, Adani Group stocks fell across the board. The drop affected several major companies under the group, including:
Adani Enterprises – down 2.6%
Adani Ports – down 2.7%
Adani Power – down 2.7%
Adani Green Energy and Adani Total Gas – down around 1–2%
This decline showed that investors were concerned about the potential consequences of a U.S. investigation. Market experts said that even if the LPG business represents a small part of Adani’s total revenue, the legal and reputation risks could be significant.
How Big is the LPG Business
LPG imports make up only a small part of Adani Enterprises’ business. In the financial year 2024–2025, revenue from this segment was around $171 million, which is just 1.46% of the company’s total income of $11.7 billion.
Even though the value is small, the issue is serious. Violating U.S. sanctions can lead to heavy fines, legal action, and restrictions on doing business in international markets.
Other Legal Troubles
The Adani Group is already facing legal action in the United States. American authorities have accused Gautam Adani, the company’s chairman, and other executives of bribing Indian officials to win solar power contracts. There are also allegations of misleading investors and committing securities fraud.
These investigations follow earlier controversies. In 2023, a U.S.-based firm accused the Adani Group of stock manipulation and accounting fraud. Credit rating agencies and analysts also raised concerns about the group’s high debt levels and corporate structure.
With these new allegations, the pressure on the group is growing. Multiple legal cases at once could make it harder for the company to defend itself or maintain investor confidence.
What Could Happen Next
If the U.S. investigation finds evidence that Adani imported fuel from Iran, the consequences could be serious:
U.S. Sanctions or Legal Charges
The company could face fines or penalties. In some cases, the U.S. might impose secondary sanctions, which could block Adani from doing business with American firms or banks.
Damage to Reputation
Even if Adani is found not guilty, the ongoing investigations damage the group’s image. This could affect partnerships, loan agreements, and future business deals.
Impact on India-U.S. Relations
Since Adani is a major Indian company with ties to government projects, this case could also create tension between the two countries. The U.S. might press India to take action if the allegations are proven.
Internal Reforms
To protect itself from future problems, Adani may need to improve its compliance systems. This could involve tighter checks on suppliers, better tracking of cargo origins, and more transparency in its operations.
Unanswered Questions
Many details about the case are still unclear. Key questions include:
Did Adani directly know that the LPG came from Iran?
Were the suspicious shipping practices a result of supplier fraud or deliberate actions?
What evidence have U.S. investigators collected?
Could the current and past investigations be connected?
These questions will likely be answered in the coming months as more information comes out.
Why This Matters
This situation is important because it highlights the challenges that large companies face in following global rules. With operations across multiple countries, it can be difficult to monitor every link in the supply chain. However, when dealing with countries like Iran that are under international sanctions, companies must be extra cautious.
This case also shows how the actions of third-party suppliers can expose even large, well-known companies to major risks. It’s a reminder that reputation, transparency, and compliance are as important as profits.
Final Thoughts
The Adani Group is once again in the spotlight, facing serious questions about its business practices and legal risks. The investigation into its alleged dealings with Iran could have long-term effects, not just on its finances but also on its global reputation.
Although the group denies all wrongdoing and says it follows all international laws, the coming months will reveal whether the evidence supports or contradicts those claims. The outcome of this case will be closely watched—not just in India and the U.S., but by businesses and governments around the world.
