A Benami RPSL (Recruitment and Placement Services License) refers to a company registered under someone else’s name but operated by another individual or entity. This arrangement is often used to conceal the identity of the actual operator and to bypass legal or regulatory scrutiny.
In the shipping industry, whether you are a seafarer, shipowner, charterer, logistics provider, medical examiner, maritime training institute, trainer, RPSL agency, or a marine equipment supplier or service provider, it’s essential to remember that your career or business is regulated by DG Shipping. At any time, they have the authority to suspend your INDOS, license, or any relevant approval, potentially bringing your operations to a standstill.
Therefore, many large shipowning companies maintain multiple RPSL licenses under different company names. This ensures they have a backup license available in case one is suspended for any reason.
If the masterminds suspect that a vessel is very old, the trading area is hazardous, or there might be salary disputes with the shipowners, they generate FORM-1 for the crew through a Benami RPSL. This ensures that any future issues do not implicate their legitimate RPSL. Typically, one RPSL is used for legitimate crewing operations, while the Benami RPSL handles risky or illegal activities, such as FORM-1 sales.
These Benami RPSL companies are often suspended by DG Shipping upon the discovery of crew-related issues. By then, seafarers face significant challenges, including difficulties in sign-offs, unpaid salaries, and unresolved compensation claims.
In many instances, seafarers visit one RPSL agency but receive FORM-1 and employment agreements from a different RPSL agency. In such cases, neither the seafarers nor the issuing RPSL agency maintain proper records or awareness of each other. These irregularities often come to light during incidents like vessel abandonment, unpaid wages, crew casualties, or missing crew cases.
3. What is the purpose of opening a Benami RPSL license?
Benami RPSLs are created to evade actions from DG Shipping, shield legitimate licenses from risks associated with illegal activities, or facilitate fraudulent operations such as emigration scams or the unauthorized sale of FORM-1 documents.
Currently, the cost of purchasing FORM-1 ranges between ₹15,000 and ₹40,000.
Starting an RPSL company requires an initial investment of around ₹15 lakh. A Benami RPSL can easily earn ₹50 lakh to ₹1 crore in a year. If major problems occur, the operators often abandon the agency and stop responding to DG Shipping’s notices or emails.
The primary purposes include:
- Conducting risky operations without jeopardizing legitimate RPSLs.
- Quick money-making
- Engaging in illegal practices such as FORM-1 sales and employing unregistered seafarers.
- Circumventing DG Shipping regulations and potential penalties.
4. How does a Benami RPSL operate?
- The license is often registered under the name of low-ranking staff, such as drivers or housekeeping employees, without their knowledge.
- Separate RPSLs are used to segregate clean business operations from risky or illegal ones.
- FORM-1 documents are generated for seafarers through the Benami RPSL to avoid associating issues like vessel abandonment or unpaid wages with legitimate licenses.
5. Who are the masterminds of running a Benami RPSL license?
These operations are usually orchestrated by individuals with in-depth knowledge of the shipping industry, including influential stakeholders such as rogue agents, company executives, or operators seeking to exploit DG shipping loopholes.
6. Who is involved in operating a Benami RPSL?
- Owners of legitimate RPSLs creating secondary Benami licenses.
- Staff members whose identities are used without their consent.
- Unscrupulous agents managing the day-to-day operations of the Benami RPSL.
7. What are the consequences of Benami RPSL?
- Suspension or cancellation of the Benami RPSL by DG Shipping.
- Legal issues and reputational damage for the operators.
- Significant hardships for seafarers, such as delayed sign-offs, unpaid wages, and difficulty obtaining compensation.
- Increased risk of vessel abandonment, crew casualties, and fraudulent documentation.
8. How to prevent RPSL from operating as Benami?
- Background Checks: Verify the qualifications and credibility of RPSL directors and stakeholders.
- Director Interviews: Conduct interviews for new applicants and director appointments.
- Technology Use: Implement systems to identify and block the DIN numbers of suspicious individuals.
- Enhanced Inspections: Expand the scope of RPSL inspections beyond standard checklists.
- Information Sharing: Encourage industry stakeholders to report suspected Benami RPSLs.
- Recruitment Limit Reviews: Carefully evaluate RPSL activity before approving increased recruitment capacities.
9. What are the measures to tackle Benami RPSL?
- Strengthen DG Shipping oversight and enforcement.
- Introduce stricter penalties for violators.
- Promote transparency in RPSL ownership and operations.
- Raise awareness among seafarers about the risks associated with Benami RPSLs.
- Foster collaboration among industry stakeholders to eliminate fraudulent practices.
By implementing these measures, the industry can reduce the prevalence of Benami RPSLs and protect the rights and welfare of seafarers while maintaining trust in regulatory frameworks.