On 20th November, an Indian national, identified as 57-year-old Sanjay Kaushik, was indicted by the United States for allegedly conspiring to export controlled aviation components to Russia. In a press release, Department of Justice said that Kaushik violated the Export Control Reform Act. The indictment was filed on 20th November in the District of Oregon in which Kaushik has been accused of attempting to export navigation and flight control systems with dual civilian and military applications through India to Russian end users. Notably, Kaushik was arrested on 17th October this year in Miami, Florida, under a criminal complaint and warrant issued by the District of Oregon.
Allegations of fraudulent export activities
The press release stated that court documents against Kaushik revealed that he allegedly began conspiring with others in March 2023 after Russia-Ukraine war started. Kaushik and others have been accused of unlawfully acquiring aerospace technology from the US under false pretences. According to DOJ, Kaushik reportedly claimed that the components were meant for his Indian company but were intended for Russian entities.
One of the key instances cited in the indictment involved the purchase of an Attitude Heading Reference System (AHRS), which is a crucial device for aircraft navigation and flight control. The system was acquired from an Oregon-based supplier. If these components are to be sold to Russian entities, a special export license is required from Department of Commerce, which Kaushik reportedly did not acquire or inform the alleged actual intent to buy. Prosecutors alleged that Kaushik and his associates “misrepresented” the end user as a civilian helicopter operator in India to obtain the component. However, the component was intercepted before it left the US.
Potential penalties and ongoing investigation
Kaushik will face severe legal repercussions if he gets convicted in the case including up to 20 years in prison and USD 1 million fine for each charge in the indictment. A federal district court judge will determine the sentencing while factoring in the US Sentencing Guidelines and staturoty considerations.
The Bureau of Industry and Security (BIS) in Portland and prosecuted by attorneys from the Department of Justice’s National Security Division and the U.S. Attorney’s Office in Oregon are investigating the case.
Part of Task Force KleptoCapture’s efforts
In March 2022, Justice Department established an initiative known as Task Force KelptoCapture to enforce sanctions, export controls and countermeansures against Russia after it initiated military action against Ukraine which turned into a full-fledged war between the two countries that continues till date. Deputy Attorney General’s Office is leading the initiative. The case against Kaushik falls under its jurisdiction.
Indictment against Adani Group
On 21st November, a five-count criminal indictment was unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives including the Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme, Reuters reported citing US prosecutors.
According to the U.S. Attorney’s Office, Eastern District of New York, “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.”
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated United States Attorney Breon Peace. The indictment also accuses the executive of obstructing investigations by the FBI, Department of Justice (DOJ), and Securities and Exchange Commission (SEC). The US Attorney’s office says that the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Adani Group rubbishes baseless allegations made by US Justice Dept and SEC
On Thursday (21st November), the spokesperson for the Adani Group rubbished allegations levelled against the Directors of ‘Adani Green’ by the US Department of Justice and the SEC. “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against the directors of Adani Green are baseless and denied,” it stated. The Indian conglomerate further stated that all legal recourse is being sought.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations,” it pointed out. The spokesperson for the Adani Group concluded, “We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws.” The development comes hours after the SEC announced that it was pressing charges against Adani Group chairman Gautam Adani and others in a $250 million bribery and fraud case.
US put Indian companies, businessmen on sanctions list for doing business with Russia amid war with Ukraine
Earlier this month, the United States government has put some Indian companies and businessmen on the sanctions list for supposedly benefitting Russia amid its war against Ukraine. It has sanctioned Ascend Aviation India Pvt. Ltd. for sending more than 700 shipments containing $2,00,000 worth of Common High-Priority List (CHPL) items to Russia-based firms between March 2023 and March 2024. Two partial shareholders of Ascend Aviation, namely, Sudhir Kumar and Vivek Kumar Mishra were also put on the sanctions list. Another India-based company targeted by the Biden administration happens to be Mask Trans. It has accused the firm of supplying $3,00,000 Common High-Priority List (CHPL) items to Russia based company between June 2023 and April 2024.
TSMD Global Pvt Ltd., an India-based company, was sanctioned for shipping $430,00,000 CHPL items to Russian firms between July 2023 and March 2024. The shipped items s include Electronic Integrated Circuits, CPUs and fixed capacitors. Another firm targeted by the US government was Futrevo for supplying $1.4 million worth of CHPL items to Russia-based companies between January 2023 and February 2024.
