Adani Enterprises Settles OFAC Case for $275 Million Over Iran-Linked LPG Transactions

Mumbai: Adani Enterprises Limited has entered into a settlement agreement with the Office of Foreign Assets Control (OFAC), agreeing to pay $275 million to resolve an investigation related to alleged Iran-linked liquefied petroleum gas (LPG) transactions. The settlement was executed on May 14, 2026 and announced by OFAC on May 18, 2026. The company clarified that the agreement has been reached without admitting the allegations and includes commitments to strengthen compliance measures.

The matter relates to LPG purchases carried out between November 2023 and June 2025, when the company bought shipments from a Dubai-based trader and its affiliates that were represented as Omani and Iraqi origin. During this period, U.S. financial institutions processed 32 dollar-denominated payments totaling about $192.1 million. OFAC determined that warning signals should have alerted the company that the LPG may have originated from Iran, potentially violating U.S. sanctions. The investigation followed the company’s voluntary engagement with the regulator after allegations surfaced in a June 2025 Wall Street Journal report.

The penalty was reduced from a maximum statutory exposure of $384.2 million after OFAC considered several mitigating factors, including the company’s cooperation during the investigation, the relatively small share of LPG business in its overall revenue—less than 1.5% of consolidated revenue for 2025—and the implementation of remedial compliance measures. However, the regulator still classified the case as “egregious” because the company did not voluntarily self-disclose the apparent violations.

The settlement primarily results in a financial payout and enhanced regulatory compliance commitments. The development represents a significant global regulatory update for Adani Enterprises, the flagship incubator of the Adani Group, which operates across infrastructure, energy, logistics, and airports.