US imposes sanctions on Chandigarh businessman for defrauding Iran oil trade

The US on Wednesday announced sanctions against a Chandigarh-based businessman, his wife, and several Indian companies associated with them. This move was taken following allegations of helping to evade international sanctions on Iran's oil trade. According to a report by Firstpost, Washington has alleged that activities carried out through this network helped Iran's shadow fleet vessels, including ships working for Iran's military and its proxies, to violate international regulations.

The US Treasury Department carried out this action under 'Operation Economic Outcast'. The campaign aims to target networks providing false guidance and fake maritime certificates to vessels transporting Iranian petroleum. These sanctions have been applied to Sunil Kumar Sharma, his wife Jaspreet Preeti Shahid, and several India-based companies associated with them. Additionally, Indian nationals named Ashwini Kumar Diman and Ishwar Singh, who served as directors of companies linked to Sharma's network, have also been sanctioned.

According to the US Treasury, Sharma and Shahid operated from Chandigarh and for years posed as authorities from various countries to set up a fraudulent maritime registry. Websites were created through this network claiming to provide services such as ship registration, flagging, crew training, and vessel classification without government permission. These activities reportedly began in 2014, when the couple attempted to pose as a maritime flagging authority for the Caribbean nation of Dominica.

In 2023, Sharma established Singapore-based 'Eswati Maritime Affairs and International Ship Registry PTE Ltd'. Despite Eswati authorities officially denying this institution, it is alleged that the entity continued to provide registration services to vessels transporting Iranian oil. The US Treasury also identified websites that falsely claimed to provide maritime registration services on behalf of countries and territories such as Aruba, Grenada, Mali, Mozambique, Malawi, Sint Maarten, and Timor-Leste. Many sanctioned vessels used this registry to continue transporting Iranian petroleum despite sanctions.

Sanctioned companies include Oceanique Technologies India, whose managing director is Sharma. The US alleges that this company was used to establish a fraudulent ship registry claiming to represent Aruba, Nicaragua, and Sint Maarten. Aryavart Ship Management Private Limited, associated with Shahid, has also been sanctioned. Diman and Singh are said to work through this company. Other Indian entities facing sanctions include Precept Trends Private Limited, Polynesia Maritime Private Limited, Alexary Finserv Private Limited, Alexary Media and Entertainment Private Limited, Vihar Boating Private Limited, and Aryavart Maritime and Educational Trust.

The US Treasury stated that while Sharma's activities drew more attention, Shahid handled the management of several businesses connected to the network on paper. US Treasury Secretary Scott Bessent said Washington will target individuals and entities that continue to support the Iranian regime through Iran's economic network. The department further stated that fraudulent ship registration allows vessels to evade international regulations designed to ensure crew safety and prevent environmental damage. He warned that vessels with false flags may not have valid insurance, which could cause countries significant economic and environmental damage in the event of an accident in their territorial waters. These sanctions were imposed under Executive Order 13902, which targets Iran's petroleum, petrochemical, and aviation sectors. In a separate action, the US also imposed sanctions on Turkey-based Fuggo Ground Services Inc for allegedly providing continuous support to Iran's aviation sector.