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DG Shipping uncovers crew certificate fraud, bans hiring of Honduras certificate holders on ships

Posted on July 20, 2025

The DGS move is aimed to curb malpractices in recruitment and prevent seafarers from getting duped or abandoned at sea. 

Directorate General of Shipping (DGS) has restricted ship owners from employing Indian seafarers holding certificate of competency (CoC) issued by Central American countries such as Honduras and Belize after uncovering fraud in their issuance.

The DGS move is aimed to curb malpractices in recruitment and prevent seafarers from getting duped or abandoned at sea. The action was initiated after a probe revealed that unapproved entities and institutes were issuing CoCs. In many instances ratings or junior seamen obtained CoCs of the rank of captain or chief officers through fraud.

The regulatory action, however, has upset seafarer unions. The All India Seafarers Union, Forward Seamen’s Union of India and National Union of Seafarers of India have complained that this action would impact the livelihoods of thousands of seamen. A DGS official denied the claim.

Seafarers engaged as officers or engineers on any foreign-flagged ships must hold a valid CoC issued by the government of India or a maritime administration from countries whose certificates are recognised by India through mutual agreement,” DGS said in a circular issued on Friday. These include eleven countries such as Malaysia, UAE, South Korea, Sweden, UK, Iran, Singapore, Australia, New Zealand, Canada and Ireland.

A similar mandate has been issued for ratings (junior employees on a ship) and they must possess a certificate of proficiency issued or recognised by India or by countries with whom India has agreements.

A CoC is a form of licence which officers or engineers hold to work on a ship. It is issued by DGS in India which also conducts written and oral examinations for various positions on a vessel.

Fake certifications

In its circular the DGS said agents have been offering a package of delivering course certificates issued by unrecognised institutes without any course being conducted. The inquiry had revealed that these maritime institutes did not even exist at the stated addresses.

The regulator said it has filed police complaints, confiscated fraudulently obtained certificates and informed relevant authorities in Honduras to cancel them. 

Sources say seafarers with Honduras issued certificate typically work on offshore vessels in West Asia or have been engaged in plying sanctioned vessels, substandard ships or those making single voyages. Seafarers have also been duped by agents into joining ships which are abandoned or detained by authorities.

“While the issue of fraudulent CoCs is serious, DGS should take a balanced view. It could ask recruitment and placement agencies for verifying genuine CoCs as well as investigate if the applicant has requisite competency. Also, flag states like Honduras, Panama and Cook Islands should issue a clarification,” said Captain Sanjay Prashar, CEO of VR Maritime Services, a ship management firm.

Meanwhile the unions have called upon DGS to hold back immediate action. In its letter NUSI said a grace period should be allowed for transition. This will enable seafarers to regularise certification without immediate disruption. SOPs must be framed for obtaining Indian certification and training capacity should be expanded to meet the increased demand.

The unions also have pointed out that seafarers from other countries take over jobs from Indian seafarers and their livelihood will be at risk.

A DGS official said the department is compiling data on the number of seafarers holding Honduras COCs. He said the fear of job losses was exaggerated. “They can continue to work on their existing ranks with Indian certificates,” he pointed out.

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