Adani Group companies are under inquiry by US prosecutors into whether they have been involved in importing Iranian petrochemical products, according to a WSJ report.
The US authorities are probing whether Adani’s firms brought Iranian liquefied petroleum gas (LPG) into India via the Mundra port, which his company operates. Certain tankers regularly traveling between Mundra and the Persian Gulf displayed behaviors typical of ships aiming to circumvent sanctions, the report stated.
Adani Group issued a clarification, ”The logistics of LPG trade are managed by well-established third-party international suppliers and logistics firms, which manage shipping in accordance with global compliance standards. The supplies are under valid contracts with the supplier having specific clauses that the product should be from nonsanctioned countries.”
”The shipment referred to in the WSJ’s story was handled through a routine commercial transaction via third-party logistics partners and was supported by documentation identifying Sohar, Oman, as the port of origin. We do not own, operate or track vessels (including the alleged SMS Bros/Neel) and cannot comment on the current or past activity of vessels we have not contracted and do not control.”, the group said in a statement.
Previously, US prosecutors had accused executives from the Adani Group, which has business interests ranging from ports to renewable energy, of involvement in bribery. Authorities claimed that Adani, along with seven other individuals, including his nephew Sagar Adani, agreed to pay approximately $265 million in bribes to Indian officials. This was allegedly done to secure contracts anticipated to generate $2 billion in profits over two decades and to facilitate the construction of India’s largest solar power project.
Additionally, prosecutors alleged that the Adanis, along with a former Adani Green Energy CEO, Vneet Jaain, secured over $3 billion in loans and bonds while concealing the corruption from lenders and investors.
The bribery controversy also sparked concerns over Adani Group’s market and public disclosure practices. Prosecutors accused the company of issuing misleading statements earlier this year regarding its awareness of the US investigation.
Fundraising plans
Recently, Adani Energy Solutions Ltd., has given the green light to raise ₹4,300 crore ($502 million) through a stake sale. According to an exchange filing on Saturday, the company’s board approved the plan to secure the funds via Qualified Institutional Placement (QIP) in one or more tranches.
The Adani Group is gradually regaining investor trust after the founder’s US indictment dampened sentiment. In April, the group raised approximately $750 million for an acquisition, with BlackRock Inc. subscribing to nearly a third of the bond offering. Just last week, its ports arm secured $150 million in a bilateral loan from DBS Group Holdings Ltd.