From Monitoring Desk – Dubai
Authorities in multiple countries, including the United Arab Emirates and jurisdictions in the Far East, are investigating a prominent Asian family with deep ties to the shipping and ship-breaking industries. According to officials in three nations, companies linked to Sanjay and Gaurav Mehta are now under active scrutiny for alleged money laundering and potential connections to sanctioned entities.
Companies Under the Scanner
The Mehtas operate through Best Oasis Ltd in Dubai and Priya Blue Industries in Gujarat, India. Both firms have long promoted themselves as environmentally responsible players in the ship recycling sector, highlighting international certifications, attendance at global conferences, and compliance with ESG standards.
However, investigators claim that behind this image lies a network of risky operations involving hazardous ship dismantling, heavy reliance on cash transactions, and the use of political influence to sidestep regulatory oversight.
Long History of Controversy
The Mehta brothers first drew significant law enforcement attention in 2006 when Priya Blue dismantled the Blue Lady, a vessel carrying more than 1,200 tons of asbestos and radioactive materials, despite strong objections from Greenpeace.
They later acquired and dismantled the Exxon Valdez—renamed Oriental Nicety—which had gained global notoriety for a catastrophic oil spill.
In recent years, their dealings have reportedly become more discreet but even more hazardous.
Alleged Links to Sanctioned Vessels in 2025
In 2025, Best Oasis allegedly purchased and dismantled four ships tied to sanctioned entities, including networks connected to Iran and the Houthis. U.S. authorities had previously listed these vessels under terrorism-related sanctions for their roles in oil smuggling and arms transport.
Reportedly dismantled vessels in 2025 include:
- NOLAN (SOLAN) – IMO 9155808 – Beaching: Jan 31, 2025 (Plot 16) – U.S. SDGT Sanction
- BLUEFINS – IMO 9221657 – Beaching: Feb 26, 2025 (Plot 16) – U.S. SDGT Sanction
- CONTRACT II – IMO 9105085 – Arrived mid-2025 (Plot 27) – SDN risk
- GAMA II – IMO 9209300 – Pending beaching (Plot 34) – U.S. SDGT Sanction
All four ships were dismantled at Alang yards using short-term leases held by proxy companies linked to the Mehtas. These leases, approved for single-ship use by the Gujarat Maritime Board, make long-term regulatory monitoring almost impossible.
Cash Deals and Offshore Payments
Investigators allege that payments for these vessels bypassed formal banking systems, with transactions reportedly completed in cash—sometimes on-site, other times through offshore intermediaries. Sources describe entire ship purchases being settled in bundles of foreign currency, thereby avoiding financial reporting in both India and Dubai.
Political Ties and Influence
Two politicians—Union Minister Mansukh Mandaviya and Gujarat State Minister Jitu Vaghani—have been linked to expedited approvals for Best Oasis and its affiliates. While no evidence directly ties them to personal financial gain, investigators allege that their influence has delayed inquiries and reduced enforcement actions against the companies.
Rebranding and International Expansion
Despite ongoing investigations in India, Best Oasis is moving forward with global expansion. In Japan, the company recently formed a joint venture with Hiroshi Abe, presenting itself as a fresh, responsible option for Japanese shipowners.
Maritime consultant Mariko Fujita warns that the new branding masks the same ownership and operational structures:
“They’re marketing themselves as a different entity, but nothing fundamental has changed.”
The Alang Ship-Breaking Network
In Alang, operational methods reportedly remain unchanged. Plots are reassigned frequently, cash transactions dominate, and known handlers—such as Jayant Vanani (aka Budhabhai Patel) and Ramesh Mendapara—continue to facilitate beachings of high-risk vessels, including the Contract II and GAMA II.
Several yards tied to Best Oasis, including Shantamani Ship Breakers and Sai Baba Ship Breakers, allegedly operate with minimal inspection despite repeated reports of safety violations, hazardous waste mismanagement, and non-compliance with Indian ship recycling regulations.
A System Designed to Avoid Oversight
Multiple sources say this network functions in plain sight, producing just enough documentation to satisfy basic checks while avoiding full inspections. Regulatory bodies, including customs and environmental officers, have reportedly never conducted comprehensive reviews of the sanctioned vessels dismantled in 2025—many were processed within days of arrival.
A Business Model Built on Loopholes
Shipping compliance expert Rahul Mistry describes the Mehta operation as more than an isolated problem:
“This isn’t just a loophole—it’s a business model. They move high volumes of sanctioned vessels with low visibility, using political and industrial networks to make them look legitimate on paper. Even as ESG rules tighten worldwide, they are rebranding and partnering to hide the same old practices.”
