Sanjay Kaushik: The Error of an Aviation Executive That Resulted in a 30-Month Prison Sentence

Who is Sanjay Kaushik, and Where Did He Go Wrong

A 58-year-old aviation executive of New Delhi and the managing partner of a U.S. company, Arezo Aviation, Sanjay Kaushik was convicted in a federal court in Portland, Oregon, on January 15, 2026, to serve 30 months in a United States federal prison with a 36 months of supervised release. The order came in on the charge of conspiracy to export controlled American aviation technology to Russia in breach of American Export Control Laws. In October 2025, after being apprehended in Miami in October 2024 while attempting to return to India. U.S. authorities described the case as a deliberate effort to circumvent export regulations during an era of heightened geopolitical sanctions.

The Deal That Crossed the Line

The charges that led to the indictment and later conviction were based on claims that Kaushik had organised with other individuals since September 2023, to purchase sensitive aviation parts such as an Attitude and Heading Reference System (AHRS), a vital navigation and flight-control system, from a supplier in Oregon. It is observed in the press release made by the U.S. Department of Justice, that the parts were acquired under the pretext that they would be used by his Indian corporation in legitimate civilian uses. As a matter of fact, the real target was the Russian end users via intermediary processing in India, where the country was a transit, but not the ultimate destination of the controlled technology.

AHRS and related products are subject to the U.S Export Control Reform Act and must have licenses obtained under the Department of Commerce to be shipped to a country operating under sanctions, such as Russia. Kaushik and his associates falsified the end use and intended customer to obtain such licences, a strategy which U.S. prosecutors described as a deliberate move calculated to take advantage of the loopholes in the export documentation and compliance systems.

The Grey Zone Where Profit Meets Regulation

Even though the AHRS shipment was intercepted and held by the federal authorities before it departed from U.S. soil, the duration of the scheme and recurrent transactions caught the eye of several enforcement agencies, including the Bureau of Industry and Security, Homeland Security Investigations, and U.S. Customs and Border Protection. The Department of Justice explained the behavior as a profit motive and collusion with approved parties, highlighting the possibility of commercial incentives and regulatory complexity being in conflict within the aviation supply chain. U.S. Attorney Scott E. Bradford characterised the actions of Kaushik “As an effort to subvert measures that are essential to the national security of the United States and its foreign policy, and an indication of the expanded definition of the enforcement of export control under the post-Ukraine war environment.”

Why Aviation Supply Chains Are Vulnerable to Sanctions Risk

Going deeper into the facts surrounding the Kaushik case, it can be contended that there are underlying structural forces that can lead executives to take high-risk decisions. According to Air Data News, the world market for avionics and navigation equipment is not only very lucrative but also very regulated. Dual-use technologies (i.e., those that can be utilised in civilian life and also in a military one) receive special attention and concern, particularly when international restrictions of sanctions interfere with the usual trade channels.

With societies that have been characterised by competing geopolitical blocs, parties within the aviation supply chains can work in the grey area where lawful and illegal transfer can be dependent on documentation and validation of the end user. Other sectors like charter, maintenance, repair, and overhaul (MRO), and aviation leasing can be particularly susceptible due to being in several jurisdictions and regulatory setups. The resulting conditions provide incentives for how actors can find economic arbitrage opportunities, which, in the case of Kaushik, led to criminal liability.

When Compliance Becomes Optional: Consequences Become Inevitable

An evolving role of compliance in the aviation supply chain management is brought out in the Kaushik saga. Since the invasion of Ukraine, the regulatory pressure has mounted, and the export controls on aviation technology have increased, which could potentially support military or authorised actors. According to industry news articles published by such magazines as Aviation Week and Simple Flying, even fairly established aerospace companies are now undergoing increased due diligence demands and due-end user cheque standards in order to conduct legal trade.

To the companies and individuals dealing with exportation internationally, compliance and awareness of the export controls have become staples like the safety and maintenance standards.

What the Case Signals for Global Aviation Trade

Increasingly, the aviation industry is becoming more global, with components, services, and expertise being regularly transported across borders; incidents such as those of Sanjay Kaushik are warning stories. They depict the legal and ethical requirements of sound compliance infrastructure and what happens when business spirit overshadows regulatory lines.

To the aviation professionals and the supply chain participants, it is not a matter of technical ability but going through a landscape where geopolitical happenings determine the legal landscape and the risk profile of corporations.