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MEA Official Spokesperson's reaction to news reports about imposition of sanctions on two Indian firms under the US-Iran Proliferation Act

New Delhi
December 28, 2005

Question: Do you have any reaction to news reports about sanctions on two Indian companies by the US? 

Answer: I have a fairly detailed response to that. We have seen reports about the removal of sanctions on Dr. Surendar by US Government. We have also seen reports about imposition of sanctions on two Indian firms namely Sabero Organics Gujarat Limited and Sandhya Organics Limited under the US-Iran Proliferation Act, 2000. The removal of sanctions on Dr. C. Surendar vindicates Government’s position on this matter. Since the imposition of sanctions in September 2004, Government has maintained that this had no justification. Accordingly, we had urged the US Government to review the issue and withdraw the sanctions. The Government also reiterates that sanctions again Dr. Y.S.R Prasad should be removed. The sanctions imposed by the US Government on the two Indian firms relate to transfer of some chemicals to Iran. Our preliminary assessment is that the transfer of such chemicals is not in violation of our regulations or our international obligations. Government of India’s commitment to prevent onward proliferation is second to none. We have instituted a rigorous system of export controls and our track record in this regard is well known. India is working with the international community including with the US as a partner against proliferation. In this context the imposition of sanctions by the US on our firms, which in our view have not acted in violation of our laws or regulations, is not justified.