Explained AIS Manupulation Adani Gas and Iran Ship Allegations Case
Explained AIS Manupulation Adani Gas and Iran Ship Allegations Case
The Automatic Identification System (AIS) is a tracking system used by ships to broadcast their position, identity, and other data to nearby vessels and shore stations for maritime safety and navigation.
AIS manipulation, also known as AIS spoofing, involves deliberately altering or disabling this system to obscure a ship’s true location, identity, or activities.
Common tactics include:
Disabling AIS Transponders: Turning off the AIS to make the ship “invisible” to tracking systems, often referred to as “going dark.”
Spoofing Location Data:
Broadcasting false coordinates to show the ship in a different location than its actual position.
Falsifying Ship Identity:
Changing the ship’s name, flag, or other identifiers in AIS data to mask its origin or ownership.
Inconsistent Reporting:
Using forged documents or misrepresenting cargo origins to align with false AIS data.
These practices are often associated with sanctions evasion, particularly in the transport of restricted goods like Iranian oil or liquefied petroleum gas (LPG), as they help conceal illicit activities from international regulators.
Adani Gas and Iran Ship Allegations -
The Adani Group, a major Indian conglomerate, is under scrutiny by the U.S. Department of Justice (DOJ) for allegedly importing Iranian-origin LPG into India via its Mundra port, potentially violating U.S. sanctions.
These sanctions, tightened under the Trump administration, prohibit trade in Iranian oil and petrochemical products, with secondary sanctions targeting entities engaging in such trade.
Key Details from the Investigation
Wall Street Journal Report: A WSJ investigation found that several LPG tankers traveling between the Persian Gulf and Adani’s Mundra port exhibited behaviors typical of sanctions evasion, including AIS manipulation.
Case of the SMS Bros (Renamed Neel):
On April 3, 2024, the Panama-flagged tanker SMS Bros (later renamed Neel) broadcasted its AIS location as Khor al Zubair, Iraq.
However, satellite imagery showed no trace of the ship there, instead identifying a vessel matching its profile at an LPG terminal in Tonbuk, Iran, 315 miles away.
By April 17, the ship delivered a $7 million LPG cargo to Mundra, with documents claiming the origin was Sohar, Oman, despite no AIS evidence of a stop there.
Other Tankers:
Three additional tankers linked to Mundra showed similar obfuscation tactics:
One, operated by the same company as SMS Bros, displayed AIS spoofing and was listed by U.S. senators as suspected of carrying Iranian oil.
Another broadcasted a false stop in Khor al Zubair, unsupported by satellite imagery.
A fourth was named in a 2024 U.S. Energy Department report for exporting Iranian petroleum.
Patterns of Evasion:
The WSJ noted that purchasers of Iranian LPG often use forged documents from Oman or Iraq to mask the cargo’s origin, a common tactic in Iran’s “ghost fleet” operations.
Ships may also engage in ship-to-ship transfers in international waters to further obscure cargo origins.
Adani Group’s Response
The Adani Group denies any deliberate sanctions evasion or trade involving Iranian-origin LPG, calling the WSJ report “baseless and mischievous.”
They claim:
They do not handle cargo from Iran or Iranian-flagged vessels as a matter of policy.
The SMS Bros/Neel shipment was a routine transaction handled by third-party logistics partners, with documentation listing Sohar, Oman, as the origin.
Their LPG trade, which accounts for only 1.46% of Adani Enterprises’ $11.7 billion revenue in FY 2024–25, complies with domestic and international laws, including U.S. sanctions.
They do not own, operate, or track the vessels in question and cannot comment on their activities, but they conduct due diligence to ensure suppliers are not on the U.S. OFAC sanctions list.
Adani asserts they are unaware of any U.S. investigation into this matter, and no formal charges have been filed.
Implications -
For Adani Group: If proven, sanctions violations could lead to secondary U.S. sanctions, barring Adani entities from U.S. business and damaging their global reputation.
This follows prior allegations of bribery and accounting fraud, further impacting investor confidence.
For Global Trade:
AIS manipulation highlights the challenge of enforcing sanctions on Iran’s clandestine oil and gas exports, often facilitated by a “ghost fleet” of vessels using deceptive practices.
For Maritime Security: Spoofing undermines AIS reliability, posing risks to navigation safety and complicating efforts to track illicit trade.
Is There a DOJ Case on AIS Manipulation Involving Adani Group?
As of June 3, 2025, the U.S. Department of Justice is reportedly investigating the Adani Group for potential violations of U.S. sanctions on Iran, specifically related to the importation of Iranian-origin LPG through their Mundra port. The investigation, reported by the Wall Street Journal, includes scrutiny of AIS manipulation by LPG tankers, a tactic used to obscure ship movements and cargo origins.
However, no formal DOJ case or indictment specifically centered on AIS manipulation has been publicly confirmed or unsealed in this matter.
Here’s the detailed breakdown:
Investigation Details:
The WSJ reported that the DOJ is reviewing activities of several LPG tankers delivering cargo to Adani Enterprises’ Mundra port, citing behaviors like AIS spoofing (broadcasting false locations), disabling transponders, and using forged documents to misrepresent cargo origins (e.g., claiming Oman instead of Iran).
A key example is the Panama-flagged tanker SMS Bros (renamed Neel), which on April 3, 2024, falsely broadcast its location as Khor al Zubair, Iraq, while satellite imagery placed it at an Iranian LPG terminal in Tonbuk.
The investigation is in its early stages, and no formal charges have been filed related to AIS manipulation or sanctions evasion.
Reuters and other outlets could not independently verify the WSJ’s claims, and the DOJ and U.S. Attorney’s Office in Brooklyn have not commented.
Adani’s Response:
The Adani Group denies any deliberate sanctions evasion or handling of Iranian-origin LPG, calling the WSJ report “baseless and mischievous.” They claim their LPG trade (1.46% of Adani Enterprises’ $11.7 billion revenue in FY 2024–25) complies with U.S. sanctions and that the SMS Bros shipment was a routine transaction with documentation listing Sohar, Oman, as the origin. Adani states they do not own, operate, or track the vessels and rely on third-party logistics partners.
DOJ Documents:
No specific DOJ documents (e.g., indictments, complaints, or filings) related to AIS manipulation by Adani have been uploaded or publicly referenced as of June 3, 2025.
The DOJ’s website does not list any unsealed cases tied to this issue.
A separate DOJ indictment from November 2024 charges Gautam Adani, Sagar Adani, and others for bribery and securities fraud related to solar energy contracts, not AIS manipulation or LPG trade.
This case, unsealed in Brooklyn, involves a $250 million bribery scheme but does not mention Iranian sanctions or AIS issues.
Other DOJ actions on Iranian sanctions evasion (e.g., a February 2024 case against IRGC-linked oil laundering) involve AIS manipulation but do not name Adani or Indian entities.
These cases highlight tactics like falsified documents and AIS spoofing to mask Iranian oil origins, similar to the Adani allegations.
Conclusion :
AIS manipulation in the Adani Gas and Iran ship context involves tactics like spoofing locations, disabling transponders, or falsifying documents to conceal Iranian LPG shipments, as alleged in the WSJ investigation.
The Adani Group denies intentional wrongdoing, claiming compliance and reliance on third-party logistics.
The investigation is ongoing, with no formal charges, and AIS spoofing alone isn’t conclusive evidence of sanctions evasion.
