The Adani Group has been hit with a fresh scandal, only months after the Kenyan government canceled two major investment deals with the Indian multinational. Gautam Adani, the businessman at the center of the controversy, is now being linked to a sensitive global issue.
According to a new investigation, Adani’s company may be involved in the illegal shipping of liquefied petroleum gas (LPG) from Iran, a country currently under strict sanctions.
The Wall Street Journal published a report on June 2 suggesting that tankers with suspicious travel routes may have brought LPG from the Gulf to Adani’s Mundra Port in western India.
A report exposing Adani shady deals which they’ve denied.
The report noted that these tankers followed unusual paths that are often seen in cases where sanctions are being avoided.
Because of these activities, the United States Justice Department is now reportedly investigating the matter. Several tankers suspected of transporting Iranian LPG to Adani’s company are being examined. This comes at a time when Adani is still struggling to recover from past scandals, and the new accusations risk worsening his already damaged image.
Adani Group was quick to respond. In a strong statement through a stock exchange filing, the company called the WSJ article baseless and accused it of being intentionally misleading.
The company said, “The WSJ story is baseless and mischievous.” They firmly denied any involvement in dodging sanctions or trading with Iranian LPG.
The group also said they are not aware of any investigations by US authorities and claimed they follow strict rules when it comes to their suppliers and the origin of the goods they receive.
Adani’s defense included mention of regular due diligence and Know Your Customer (KYC) checks to make sure that their LPG suppliers are not connected to US sanctions. They also said that they do not own or control the ships mentioned in the report and therefore cannot be held responsible for any activities involving those vessels.
A report further exposing Adani.
This scandal adds pressure on Adani at a time when he is already trying to rebuild his company’s global image. In late 2024, both Gautam Adani and his nephew Sagar Adani faced charges in the US related to bribery and false information shared with investors.
That incident had ripple effects, especially in Kenya, where President William Ruto cancelled two controversial agreements between his government and the Adani Group. One of those was a KSh 240 billion project to manage Jomo Kenyatta International Airport for three decades. The other was a KSh 96 billion energy project to build power lines across the country.
These deals had raised eyebrows even before the US charges, but after the legal trouble, pressure mounted and Ruto acted.
The latest LPG scandal only deepens the suspicion surrounding the Adani Group’s business practices. Meanwhile, Nelson Amenya, the whistleblower who revealed Adani’s earlier links to the Kenyan government, has once again raised alarm.
This time, he has flagged a possible new deal between the Kenyan government and a company based in the Middle East, suggesting that similar shady dealings could be on the horizon.