Best Oasis Ltd, a prominent player in the global ship recycling industry based out of Dubai, has been named in an expanding multinational investigation into money laundering, sanctions evasion, and hazardous waste mismanagement, according to multiple reports quoting authorities across three jurisdictions.

The investigation centers on Sanjay and Gaurav Mehta, an Indian-origin business family with decades of experience in the shipbreaking and recycling industry. Through Best Oasis in Dubai and Priya Blue Industries in Gujarat, the Mehtas have long promoted themselves as leaders in environmentally responsible ship recycling. But international investigators say behind the ESG (Environmental, Social and Governance) branding lies a network of high-risk operations and regulatory evasion.

Longstanding Concerns and Past Violations

The Mehtas’ businesses first came under legal scrutiny in 2006, when Priya Blue controversially dismantled the “Blue Lady,” a ship laden with over 1,200 tons of asbestos and radioactive materials. Environmental groups, including Greenpeace, condemned the move. The company again drew global attention after acquiring and scrapping the infamous “Exxon Valdez” — later renamed “Oriental Nicety” — a vessel responsible for one of the worst oil spills in history.

More recently, the investigations have zeroed in on Best Oasis’ dismantling of ships linked to sanctioned regimes, particularly involving Iran and Houthi-controlled entities in 2025.

Sanctioned Vessels Scrapped Under the Radar

Sources familiar with the investigation provided the following details on four vessels reportedly dismantled by Best Oasis in 2025 — all allegedly linked to U.S.-sanctioned terrorist entities or illicit oil trade:

IMO Number Vessel Name Sanction Type Beaching Date Plot Location

9155808 NOLAN (SOLAN) SDN (SDGT) 31 Jan 2025 Plot 16

9221657 BLUEFINS SDN (SDGT) 26 Feb 2025 Plot 16

9105085 CONTRACT II SDN Risk Mid-2025 (exact date unknown) Plot 27

9209300 GAMA II SDN (SDGT) Pending/Planned Plot 34

All vessels were beached in Alang, India, on plots leased by short-term proxy companies reportedly controlled by the Mehtas. This leasing arrangement — often granted on a per-ship basis — significantly complicates regulatory enforcement, as plot registrations frequently lapse shortly after dismantling, leaving little to no official trace.

Financial Irregularities and Shadow Payments

Investigators allege that transactions for these ships were largely settled in cash — often paid in foreign currency on-site or via offshore intermediaries — deliberately bypassing Indian and Dubai financial reporting systems.

A source close to the inquiry stated, “Entire ship values were exchanged in hard currency, delivered in bundles, without entering formal banking channels. This method avoids audit trails and anti-money laundering checks.”

Rahul Mistry, a researcher specializing in maritime compliance, added, “This isn’t a one-off. Over the last two years, we’ve seen more sanctioned hulls processed this way — quietly, rapidly, and with zero digital trace.”

Political Influence and Regulatory Failures

Sources have linked Union Minister Mansukh Mandaviya and Gujarat State Minister Jitu Vaghani to expedited approvals for Best Oasis and its proxies. While no direct evidence of personal enrichment has emerged, whistleblowers allege the ministers leveraged political power to fast-track leases, delay investigations, and suppress compliance inquiries.

A former Alang port official, Akin Yadav, confirmed the trend: “Short-term leasing wasn’t designed to be a workaround, but it’s become just that. The system now actively prevents long-term scrutiny.”

Old Faces, New Branding

Despite its growing legal troubles, Best Oasis has recently rebranded itself for expansion into East Asia. A joint venture with Japanese businessman Hiroshi Abe is being promoted as a clean, regionally responsible recycling initiative targeting Japan’s retiring commercial fleet.

Tokyo-based maritime consultant Mariko Fujita raised alarms: “They’re presenting themselves as a completely new entity, omitting any mention of the Mehtas’ past environmental or regulatory violations. But the ownership and structure are fundamentally unchanged.”

Network of Breakers and Handlers

At Alang, operations reportedly continue under familiar names. Individuals like Jayant Vanani (aka Budhabhai Patel) and Ramesh Mendapara — both previously flagged in connection with distressed or sanctioned vessels — have reemerged in recent beachings.

Shipbreaking yards allegedly tied to Best Oasis, including Shantamani Ship Breakers and Sai Baba Ship Breakers, are said to operate with minimal oversight. Reports cite widespread violations of safety protocols, hazardous waste mismanagement, and flouting of Indian scrapping regulations.

ESG Claims Under Fire

Despite public participation in ESG summits and showcasing of environmental certifications, experts suggest these are being used as cover.

Rahul Mistry summarized: “This isn’t merely exploiting loopholes — it’s an entire business model built on laundering end-of-life ships through jurisdictions with weak enforcement. The players remain the same. Only the branding and the paper trail change.”

Looking Ahead

Authorities in Dubai, Japan, and India are reportedly coordinating on further investigative steps. Environmental groups and compliance watchdogs are also urging the International Maritime Organization (IMO) to review how end-of-life ships are tracked and disposed of globally.

As scrutiny around ESG claims and sanctions compliance intensifies, the Mehtas and their companies could face growing legal and reputational pressure, both at home and abroad.