Export Privileges Denied to Indian Corporation and Three Executives

WASHINGTON - The Commerce Department’s Bureau of Industry and Security  (BIS) today announced that it is denying the export privileges of three Indian businessmen, and  their employer, Megatech Engineering & Services Pvt. Ltd. of Mumbai India, for engaging in a conspiracy to export high-tech testing equipment in violation of the Export Administration Regulations.

“This complex and lengthy investigation demonstrates the resolve of the Office of Export Enforcement and its agents to vigorously pursue violations involving diversions of U.S. goods to foreign WMD programs," Commerce Assistant Secretary for Export Enforcement Darryl W. Jackson stated

Under Secretary of Commerce for Industry and Security Mario Mancuso concurred with an Administrative Law Judge’s recommendations that Ajay Ahuja, Ravi Shettigar, T.K. Mohan, and  Megatech Engineering & Services each committed three EAR violations when they engaged in a conspiracy to export certain high-tech testing equipment without the required BIS authorization to the Indira Gandhi Centre for Atomic Research, which is listed on the Commerce Department’s Entity List.  Charges against the parties were originally filed in February 2004.  

Additionally, each party was found to have been involved in the development of a scheme by which a front company in India named Technology Options would receive the exported equipment from the United States without a BIS license and then divert the equipment to the Indira Gandhi Centre for Atomic Research.  The parties were also found to have been involved in the development of a second diversion scheme involving the proposed exportation of additional equipment to the end-user.  
 
The equipment involved in the conspiracy is a thermal mechanical fatigue test system and a universal testing machine, was manufactured by MTS Systems Corporation of Eden Prairie Minnesota (MTS Systems).  Megatech Engineering & Services Pvt. Ltd. was the former agent in India for MTS Systems.  MTS Systems previously settled allegations related to this matter in April 2006, and BIS issued a 10-year denial Order in November 2004 against Technology Options and one of its employees

BIS places organizations on the Entity List after determining that exports to those entities pose an unacceptable risk of being diverted to a weapons of mass destruction program.  The Indira Gandhi Centre for Atomic Research, located near Chennai in India, has been on the Entity List since 1998.  

Assistant Secretary Jackson commended the Export Enforcement Chicago Field Office and the Department’s Office of Chief Counsel for Industry and Security for their work on this significant investigation.

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