Kandla Port mystery: India may push Pakistan back to 'Grey List' after FATF missile revelation; check details

In 2020, Indian customs intercepted a shipment mislabeled as industrial machinery at Kandla port. The FATF confirmed the cargo, a pressure chamber crucial for ballistic missile development, was destined for Pakistan's National Development Complex.

A global anti-money laundering watchdog has shed fresh light on a 2020 incident at Gujarat's Kandla port, connecting it to Pakistan's long-range missile programme. In a recent case study, the Financial Action Task Force (FATF) said the intercepted cargo—mislabelled as industrial machinery—was actually equipment critical for ballistic missile development and was headed to Pakistan's National Development Complex (NDC).

Indian customs seized suspicious cargo bound for Karachi

Back in February 2020, acting on intelligence inputs, Indian authorities intercepted a Hong Kong-flagged vessel, Da Cui Yun, that had departed from China's Jiangyin port. Onboard was a pressure chamber—an autoclave—about 35–40 feet long, hidden under false documentation. The ship was en route to Karachi's Port Qasim.

What raised eyebrows further was the recipient: the cargo was linked to Pakistan's National Development Complex, known to be involved in the country’s missile development. The FATF confirmed that the Bill of Lading exposed this link.

FATF raises alarm on proliferation financing

This revelation comes as FATF is stepping up its focus on state-sponsored terrorism and the movement of funds used to support such activities. The report specifically warns against proliferation financing—when countries or non-state actors secretly acquire technology and materials for weapons of mass destruction.

"The proliferation of weapons of mass destruction and related financing represents a significant threat to global security and the integrity of the international financial system," the report states.

April Kashmir attack adds context:

The timing of the disclosure is notable. Just months ago, a terror attack in Jammu and Kashmir's Pahalgam killed 26 people. FATF, in an unusually strong statement, condemned the attack and warned that such events can't happen "without money and the means to move funds between terrorist supporters."

This has added fuel to India's effort to highlight Pakistan's role in facilitating such activities on the global stage.

India expected to present stronger case in FATF forums:

According to officials cited by PTI, India is likely to include this incident in its dossier to the Asia Pacific Group in August and the FATF plenary in October. The aim is to make a case for Pakistan's return to the grey list—a category reserved for countries that fail to effectively monitor or act against terror financing and money laundering.

DRDO involved in 2020 investigation:

At the time of the Kandla port seizure, scientists from India's Defence Research and Development Organisation (DRDO) were called in to study the seized equipment. The device, initially labelled as an autoclave, was later confirmed to have potential applications in missile motor production.