CMS INDUSLAW has successfully represented Lokesh Machines Limited in achieving a significant legal victory by securing its removal from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons (SDN) List. This achievement marks a pioneering moment in Indian legal history as it is the first successful delisting for an Indian company granted by OFAC.
Strategic Legal Representation
The legal team from CMS INDUSLAW was led by Faraz Alam Sagar, Partner & Head of Dispute Resolution and White-Collar Crime, alongside Surya Karan Sambyal, Partner. They were supported by Senior Associate Aarti Abhyankar and Associates Aditi Goyal, Kinjal Sharma, Urja Dhapre, Prateek Ayyappan, and Diya Choudhary.
Designation and Legal Strategy
Lokesh Machines was designated on October 30, 2024, under Executive Order 14024, which pertains to OFAC’s Russia-related sanctions program. The designation was due to alleged operations in the manufacturing sector of the Russian Federation economy. The designation resulted in significant repercussions, including the blocking of assets under U.S. jurisdiction and restrictions on transactions with U.S. individuals and entities.
CMS INDUSLAW meticulously prepared a comprehensive delisting petition to challenge the designation on multiple grounds, culminating in the successful removal of the company from the SDN List on June 30, 2026.
Comprehensive Support and Collaboration
Throughout the process, CMS INDUSLAW provided extensive support to Lokesh Machines, including conducting a thorough review of the designation, developing strategic approaches, preparing the delisting petition, and responding to OFAC’s inquiries. Additionally, the firm co-counseled with U.S. law firm Blank Rome LLP to advocate for Lokesh Machines Limited’s interests in front of OFAC.
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The firm also ensured that Lokesh Machines was well-prepared to handle the implications of the designation, offering guidance on business continuity, sanctions compliance, and training to safeguard the company’s operations.
Significance of the Outcome
Faraz Alam Sagar expressed his satisfaction with the outcome, stating, “This delisting marks the first removal of Indian companies from OFAC’s Russia-related sanctions list since the 2024 designations. We’re pleased to have secured this outcome for our client and to see Lokesh Machines Limited’s name cleared from the SDN List. This result reinforces CMS INDUSLAW’s depth of experience and position as India’s leading firm for international sanctions advisory.”
This landmark decision not only clears the name of Lokesh Machines Limited but also underscores CMS INDUSLAW’s expertise and leadership in navigating complex international sanctions landscapes.
