Banks are hunting a rogue tanker that is understood to be in limbo in Indian territorial waters after jumping arrest.

The 46,300-dwt Hiranya (ex-Sea Force and Sirius I, built 1996) allegedly went missing in January from Sharjah in the United Arab Emirates, where it had been under arrest since October last year.

Then, last week, it turned up off Alang on the Indian coast and was circulated to cash buyers at a bargain price, industry sources told TradeWinds.

But whoever took the ship may now find it hard to unload.

"The ship can't be delivered. Notice has been served to all the recyclers in India," said one official at a major cash buyer of ships for demolition.

"We were offered it at a cheap price but knowing the problems surrounding the vessel, no thanks. There are plenty of other tankers out there."

VesselsValue gives the ship a scrap price of $4.85m.

Official sources list its most recent owner as one-ship company Magic Shine Investments of the British Virgin Islands. Other recent owners, operators or managers include Hanan Shipping and Givenergy FZC.

Banque de Commerce et de Placements (Geneva) and its Dubai International Financial Centre affiliate are pursuing the ship. The companies claim they are out of pocket to the tune of $30.4m plus interest and costs after making a $33m loan secured by the vessel's cargo.

The ship allegedly delivered a clean product cargo at Basra in Iraq and departed with the loan unpaid.

The vessel was subsequently arrested via a 25 September order of Sharjah Court, which was served on 31 October.

Disappearing act

On 11 January, the ship and its automatic identification system signal disappeared. It then showed up off Alang, where arrangements had been made to beach it at Plot No 91, according to an announcement to potential buyers.

The ship is said to be in Indian territorial waters outside of the provincial court's jurisdiction.

In documents, seen by TradeWinds, the borrower is identified as Dubai-based cargo owner Golden Crown Petroleum FZE. Golden Crown officials did not respond to enquiries from TradeWinds.

Cash buyers are denying any connection with the ship. Singapore-based Wirana Shipping Corp has denied reports that connect it to the tanker.

"We are not aware of this ship and have no idea if it has been arrested," said a Singapore-based Wirana official, who declined to identify himself but expressed interest in TradeWinds' confidential sources.

"Tell your source that Wirana thanks him for his concern and trying to put us in the news. We don't mind the free publicity."

Wirana chief executive Rakesh “Billu” Khetan did not respond to calls from TradeWinds.