Adani Enterprises Limited, the flagship entity of the Indian conglomerate Adani Group, has reached a significant settlement with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). The company will pay $275 million to resolve an investigation into alleged Iran-linked liquefied petroleum gas (LPG) shipments, as disclosed in a stock exchange filing dated May 18, 2026.
Details of the OFAC Investigation
The settlement concludes a probe into LPG imports conducted by Adani Enterprises between November 2023 and June 2025. OFAC's investigation determined that the company purchased LPG from a Dubai-based trader and its affiliates, which purportedly supplied Omani and Iraqi-origin gas. However, U.S. investigators identified multiple “red flags” that should have indicated the LPG may have originated from Iran.
According to the filing, Adani Enterprises allegedly caused U.S. financial institutions to process 32 dollar-denominated payments, totaling approximately $192.1 million, for these shipments. OFAC characterized the case as an “egregious” violation of Iran-related sanctions rules, noting that the company did not voluntarily disclose the issue before regulatory scrutiny began.
Settlement Terms and Mitigating Factors
While the maximum statutory penalty for the violations was assessed at approximately $384.2 million, OFAC reduced the final settlement amount to $275 million. Adani Enterprises stated that this reduction reflected several mitigating factors:
- The company had not received a prior OFAC penalty or violation notice in the preceding five years.
- The LPG business constituted less than 1.5% of its consolidated revenue in 2025.
- Adani Enterprises provided substantial cooperation to U.S. authorities during the investigation.
- The company implemented additional compliance and remedial measures to prevent future occurrences.
Adani Enterprises emphasized that the settlement was reached “without admitting the allegations made by OFAC.” The investigation reportedly gained momentum following a June 2, 2025 report by The Wall Street Journal, which raised questions regarding the origin of the LPG cargoes. The company subsequently engaged with OFAC through legal counsel and cooperated fully.
Broader Implications for Global Trade
This settlement represents one of the most substantial sanctions-related resolutions involving a major Indian conglomerate. It underscores the intensifying scrutiny global companies face regarding supply-chain compliance and exposure to sanctions, particularly within the energy trading sector.
“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.”
The resolution serves as a stark reminder that companies leveraging the U.S. financial system, particularly for dollar-denominated transactions, remain subject to OFAC jurisdiction, even when dealing with intermediaries in third countries that may obscure the true origin of goods from sanctioned nations.