Adani facing US probe over imports of Iranian oil
What's the story
The US Treasury Department has sought information from Adani Enterprises over allegations of importing Iranian oil products into India. The request was made on February 4, according to a regulatory filing by the company. This comes after a Wall Street Journal report last year claimed that firms owned by Gautam Adani were being probed by US prosecutors over the import of Iranian liquefied petroleum gas (LPG) through Mundra port.
Company response
Inquiry adds to Adani Group's legal challenges
In its regulatory filing, Adani Enterprises said it had initiated discussions with the Office of Foreign Assets Control (OFAC), the Treasury's sanctions arm, after the Wall Street Journal report. The company denied importing LPG from Iran and said that it has not been penalized for any such transactions so far. However, this development has added to the group's existing legal woes, including bribery allegations against top executives.
Market reaction
Shares of Adani Enterprises fall
The news of the US Treasury Department's inquiry has led to a drop in the shares of Adani Enterprises, the flagship company of the Adani Group. The firm's stock fell as much as 3.5% today. This decline is likely a reaction to the ongoing investigation and its potential implications for the company's operations and reputation in international trade.