Nagpur: SBL Limited, which is facing US sanctions for exporting explosives that were allegedly used in the civil war in Sudan, will have to depend on a clearance from the US Treasury Department’s Office of Foreign Assets Control (OFAC) for even paying a lawyer to file an appeal against the decision.The Nagpur-based company, which has a manufacturing capacity in Nagpur and Raipur, is close to signing up a leading law firm in the US for fighting its case. Since the case has to be fought in the US, the payment too will have to be done in dollars, said a source.The sanctions put an embargo on SBL’s receipt or payment in dollars. The company will have to first get a licence from the US OFAC to make the specified payment to the law firm, said sources involved in the company’s petition. It is hoped this may not take much time, said the source.The sanctions, however, do not completely put a ban on SBL’s exports. The company can even sell in the US market but will have to get an OFAC licence for each specific deal, but it may take months to get one.The embargo on SBL’s receipt or payment in dollars has brought its international business to a standstill. Though it can deal in other currency, SBL is preferring to wait till the sanctions are lifted, said the source. “Rather, it should be taken as lessons learnt for other companies that are facing sanctions too,” said a source among the management.In the meantime, SBL is hoping to get its name delisted from the sanctioned entities list first.OFAC has charged SBL with having sold explosives to Sudanese govt company Target Multiactivities Company, which is ultimately controlled by Defence Industries Systems. The material ended up being used by the Sudanese armed forces, ultimately fuelling the civil war with the rival faction.On the other hand, SBL said these were not military-grade explosives and were meant for mining purposes. The exports were done on the basis of an end-use certificate, the company said.Sources said there are firms that carry out KYC of the clients. Such firms carry out a thorough check of the directors, promoters and other related parties to whom the material has to be exported, the source said, adding that a professional due diligence would have perhaps led to the company taking a better decision.
