Saibaba Shiprecycling LLP, a ship demolition firm based in Alang, Gujarat, is facing mounting legal scrutiny after beginning work to scrap the oil tanker Sunflower, formerly known as MV Nolan — a vessel sanctioned by the U.S. Treasury for its involvement in transporting Iranian oil in violation of sanctions.
The dispute has escalated after a U.S. lawyer representing families of September 11, 2001 victims wrote to Saibaba Shiprecycling, the Gujarat Maritime Board, and Indian maritime authorities demanding an immediate halt to the scrapping operation. The lawyer asserts that Nolan remains subject to a U.S. court order and OFAC sanctions, and that any dealings without a specific license from the Office of Foreign Assets Control could expose the yard to sanctions itself.
Originally built in 2000 in South Korea, Nolan was sanctioned by the U.S. for shipping Iranian oil in breach of sanctions and later renamed Sunflower after being sold through a Seychelles‑based shell company alleged to have links with sanctioned individuals. The tanker was beaching for dismantling in late November.
The letter contends that Saibaba Shiprecycling’s involvement in scrapping the sanctioned vessel — without U.S. government authorization — could subject the company and associated entities to secondary sanctions, putting the yard and India’s broader ship recycling sector at legal risk.
Industry watchers say the incident highlights broader challenges in handling “dark fleet” vessels — older tankers linked to sanctions — whose disposal has become increasingly complex amid global enforcement efforts and financial sector resistance to engaging with sanctioned assets.
Saibaba Shiprecycling’s promoter has said the company is still gathering facts, while authorities assess the situation; the case could have implications for regulatory oversight of sanctioned tonnage entering South Asian recycling hubs.