Adani-OFAC USD 275 Million Iran Sanctions Settlement; US Drops Criminal Case, SEC Closes Civil

Constitutional & Legal Framework

• Foreign Corrupt Practices Act (FCPA) 1977 — US law that the original 2024 indictment relied on; criminalises bribery of foreign officials by US-listed entities.
• OFAC Iran Transactions and Sanctions Regulations — administered by US Treasury; prohibit US-nexus dealings with Iranian-origin goods.
• US Securities Exchange Act 1934 — basis of the parallel SEC civil action on disclosure adequacy.
• India-US Mutual Legal Assistance Treaty (MLAT) 2001 — channel for cross-border evidence requests.
• Article 51, DPSP — directs the Indian State to promote respect for international law.
• Indian regulatory analogues: SEBI (securities fraud) and SFIO under the Companies Act 2013 (corporate fraud).

Why This Matters for CLAT 2027

This is a perfect Legal Reasoning + Current Affairs crossover. Expect questions on:

• Extra-territorial reach of US sanctions and the ‘US-nexus’ doctrine.
• ‘Apparent Violations’ as an administrative-civil remedy without admission of guilt — contrast with criminal conviction standards.
• Dismissal ‘with prejudice’ versus ‘without prejudice’ in criminal procedure.
• How MLATs operate; relationship between domestic enforcement (SEBI/SFIO) and foreign regulators.
• Constitutional duty under Article 51 to honour international law obligations.

Key Facts at a Glance

Mnemonic & Memory Aid

“OFAC SECs Adani for 275 Iranian LPG”

• OFAC = Office of Foreign Assets Control (US Treasury sanctions cop)
• SEC = parallel civil case settled at USD 18 million
• 275 = USD million OFAC settlement
• Iranian LPG = the underlying commodity violation

Tie it to Article 51 (international law) and MLAT (evidence sharing).

Practice Quiz — 10 CLAT-Style Questions

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