Adani Enterprises settles Iran-linked gas shipments probe with US Treasury for $275 million 

Adani Enterprises Limited has entered into a major settlement with the US Treasury Department’s sanctions enforcement agency over alleged Iran-linked LPG transactions, agreeing to pay $275 million to resolve the matter without admitting wrongdoing. 

In a stock exchange filing dated May 18, the flagship company of the Adani Group said it had signed a settlement agreement on May 14 with the US Department of the Treasury's Office of Foreign Assets Control (OFAC), the American agency responsible for enforcing economic and trade sanctions. 

The settlement follows an investigation into liquified petroleum gas (LPG) imports made by the company between November 2023 and June 2025. 

According to the filing, OFAC concluded that Adani Enterprises purchased LPG shipments from a Dubai-based trader and its affiliates that purportedly supplied Omani and Iraqi-origin gas. However, US investigators determined that multiple “red flags” should have alerted the company that the LPG may actually have originated from Iran. 

The disclosure said Adani Enterprises caused US financial institutions to process 32 dollar-denominated payments totaling approximately $192.1 million for those shipments. 

OFAC classified the matter as an “egregious case” involving apparent violations of Iran-related sanctions rules and noted that the company did not voluntarily self-disclose the issue before regulatory scrutiny intensified. 

Settlement amount reduced 

While the maximum statutory penalty assessed in the case stood at around $384.2 million, OFAC reduced the final settlement amount to $275 million. 

Adani Enterprises said the reduction reflected several mitigating factors, including: 

• the company not having received a prior OFAC penalty or violation notice in the preceding five years, 
• the LPG business contributing less than 1.5% of consolidated revenue in 2025, 
• substantial cooperation extended to U.S. authorities, 
• and implementation of additional compliance and remedial measures. 

The company stressed that the settlement was reached “without admitting the allegations made by OFAC.” 

Triggered by Wall Street Journal report 

The filing also referenced a June 2, 2025 report by The Wall Street Journal that allegedly raised questions around the origin of the LPG cargoes. Adani said it had subsequently engaged with OFAC through legal counsel and cooperated with the investigation. 

The disclosure marks one of the most significant sanctions-related settlements involving a major Indian conglomerate and underscores the growing scrutiny global companies face over supply-chain compliance and sanctions exposure, particularly in energy trading. 

The case also highlights the increasingly aggressive enforcement posture adopted by US regulators toward indirect trade flows linked to sanctioned jurisdictions such as Iran. 

Even where transactions involve intermediaries or third-country traders, companies using the US financial system — especially dollar-denominated payments routed through American banks — can fall within OFAC jurisdiction.