Hans Raj Shiv

Key Points

• Hans Raj Shiv, the head of NEC Engineers Pvt. Ltd., was implicated in illegal exports of dual-use chemical equipment to Iraq between 1998 and 2001.

• The United States sanctioned Shiv and NEC under the Iran-Iraq Arms Non-Proliferation Act—the first time the Act was invoked.

• Shipments were traced to Iraq’s Fallujah II chlorine plant and the Al Mamoun rocket fuel facility, both associated with weapons development.

• Fake documentation and use of front companies in Jordan, Dubai, and the UK were employed to mask the final destination of the materials.

Overview

Hans Raj Shiv led NEC Engineers Pvt. Ltd., a Delhi-based company established around 1984. The company specialized in exporting chemical engineering and oil-drilling equipment, primarily to the Gulf region. Shiv oversaw exports through international subsidiaries and worked closely with Middle Eastern intermediaries. Though relatively obscure, NEC emerged at the center of an international controversy for allegedly aiding Iraq’s weapons development program during the U.N. sanctions era.

Allegations and Concerns

• Export of Prohibited Goods: NEC shipped dual-use items like titanium vessels, aluminum powder, ammonium perchlorate, and centrifugal pumps—goods suitable for chemical weapons and missile production.

• Falsified Documents: Shipments were disguised as water treatment or construction supplies, using falsified customs declarations.

• Installation Support: Company officials, including Shiv, reportedly traveled to Iraq’s Fallujah II plant to assist in installation, deepening the suspicions about NEC’s intent.

• Use of Front Companies: Entities like Euro International Project Ltd. and British Scaffolding acted as smokescreens to channel goods to Iraq.

• U.N. Verification: Inspections by the United Nations confirmed the presence of NEC-supplied materials at sites directly linked to Iraq’s chemical and rocket fuel programs.

• Government Action: The Indian government suspended NEC’s export license, raided company premises, and revoked passports of key personnel.

Customer Feedback

As NEC was engaged in B2B exports with governments and large contractors, there are no recorded public customer reviews. The available negative commentary comes from government investigations and international media coverage rather than consumer experiences.

Risk Considerations

• Reputational: Involvement in weapons proliferation during a global embargo seriously tarnished NEC’s standing.

• Legal: Sanctions from the U.S. government, Indian criminal investigations, and possible violations of international arms control laws.

• Financial: The suspension of licenses and criminal investigations have likely frozen operations and damaged revenue streams.

• Compliance Exposure: Potential risk for any companies that have previously transacted with NEC due to legal entanglements and reputational damage.

Business Relations and Associations

• Shiv worked closely with intermediaries like Al Najah in Baghdad and Mohammed Al Khatib in Jordan.

• His son Siddhartha Hans and senior figures such as Technical Director R.C.P. Choudhary and GM Rajiv Dhir were also implicated.

• NEC maintained active fronts and agents in Jordan, Dubai, and the United Kingdom, allowing them to route exports under false pretenses.

Legal and Financial Concerns

• NEC and Hans Raj Shiv faced sanctions under multiple U.S. laws targeting proliferation.

• Indian enforcement agencies initiated proceedings against the company and key personnel for violating export and customs laws.

• With the export license suspended, ongoing business operations were effectively paralyzed.

• International buyers and governments severed ties due to the reputational fallout and legal ramifications.

Risk Assessment Table