Adani Settles US Iran Sanctions Violation Case for $275 Million
New Delhi/New York: Adani Group on Monday agreed to pay US$275 million to resolve alleged violations of US sanctions against Iran. The US Treasury Department’s Office of Foreign Assets Control (OFAC) said the Indian conglomerate had extended “extensive cooperation” with the investigation and made “proactive” statements. Adani Enterprises, the group’s flagship, had purchased a shipment of liquefied petroleum gas (LPG) from a Dubai-based trader that allegedly supplied Omani and Iraqi gas. He was actually of Iranian origin.
The settlement does not constitute a finding of guilt or wrongdoing and resolves all related liabilities.
“AEL agreed to pay its potential civil liability for 32 apparent violations of OFAC’s Iran sanctions,” OFAC said.
AEL purchased LPG shipments from a Dubai-based trader who claimed to supply Omani and Iraqi gas from November 2023 to June 2025. Although the Dubai supplier presented itself as a reputable intermediary supplying LPG primarily from Oman as well as Iraq, in reality the company was acting as a conduit for Iran’s illicit supply to enter the market.
“None of the parties involved in AEL’s LPG imports were sanctioned at the time of the LPG shipment, and none of the documents provided to AEL contained any information clearly indicating that the LPG was of Iranian origin,” OFAC’s decision detailing the agreement said. It was said.
However, AEL and Adani Ports & SEZ’s sanctions compliance program did not include other measures to account for the risks arising from their agreements.
LPG was imported from Mundra port operated by APSEZ in Gujarat.
“Following public reports in June 2025 that AEL was importing LPG originating from Iran, AEL immediately suspended all LPG imports and engaged a US-based consultant to conduct a comprehensive investigation into the company’s LPG business,” the statement said.
The decision said AEL “cooperated extensively with OFAC’s investigation, including proactively disclosing the findings of its investigation, producing large amounts of documents, meaningfully answering all of the agency’s questions, and promptly resolving its potential liability.”
Additionally, it was noted that AEL has implemented comprehensive improvements to its sanctions compliance program that applies across AEL’s group of companies.
This is the second case closed in the US in the last few days. Last week, Adani and his nephew Sagar agreed to pay US$18 million to resolve US Securities and Exchange Commission allegations that they lied to investors by concealing an alleged bribery scheme while trying to raise capital for the conglomerate’s renewable energy unit.
The deal was part of U.S. officials moving closer to a broader settlement that would include Adani and the Justice Department dismissing criminal fraud charges and the Treasury Department imposing civil penalties for violating sanctions against Iran.
Under OFAC rules, the statutory maximum penalty could reach approximately $384 million, depending on the value of the transactions examined. However, the agency reduced the final settlement amount to $275 million, citing voluntary self-reporting, proactive engagement and corrective compliance steps the company had taken.
In a filing to the exchange, AEL said it had signed a settlement agreement with OFAC.
“Under the Settlement Agreement, the company has committed to pay OFAC the settlement amount of $275 million.”
The settlement amount was less than the maximum statutory penalty of $384.2 million because AEL had not received any penalty notices or Findings of Violation from OFAC in the five years prior to the proceedings, the LPG business constituted a small percentage of the firm’s total revenue, the company had “provided significant cooperation with OFAC,” and “the implementation of remedial measures and certain additional compliance commitments.”
AEL said the “settlement occurred without acknowledging the allegations made by OFAC.”
The case arose after Adani reported the issue to OFAC after it was revealed that a ship carrying LPG of Iranian origin had docked at Mundra Port in 2025. In February 2026, the company announced that OFAC had formally requested information on transactions dating back to June 2023 to assess whether payments conducted through US financial institutions indirectly involved sanctioned Iranian entities.
Adani Enterprises subsequently halted all LPG imports, strengthened sanctions compliance procedures and implemented additional internal controls. OFAC cited these remedial actions, as well as compliance commitments made by the company, as key factors behind the reduced settlement.
The OFAC matter was separate from high-profile investigations by the U.S. Department of Justice and the Securities and Exchange Commission involving Gautam Adani and other executives.
The joint resolution of the DOJ, SEC and OFAC matters is expected to clear a major legal hurdle for Adani Group after months of regulatory and investor scrutiny.
Despite the investigations, the holding continued to expand in infrastructure, logistics and energy business lines. Company records show that Adani Group’s listed entities reported record EBITDA of around US$5.3 billion in the first half of FY26, while capital expenditure during the period was estimated at around US$17 billion.
