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NEW DELHI: The Delhi high court on Thursday reserved its verdict on an appeal by London-based arms middleman Sanjay Bhandari challenging a trial court's order designating him as a fugitive economic offender (FEO), which would allow the authorities to confiscate Bhandari's properties worldwide.
NEW DELHI: The Delhi high court on Thursday reserved its verdict on an appeal by London-based arms middleman Sanjay Bhandari challenging a trial court's order designating him as a fugitive economic offender (FEO), which would allow the authorities to confiscate Bhandari's properties worldwide.
Justice Neena Bansal reserved the verdict after the Enforcement Directorate (ED), represented by additional solicitor general SV Raju and special counsel Zoheb Hossain, asked the single bench to reject the petition, insisting that the agency had sufficient evidence that Bhandari evaded taxes to the tune of ₹100 crore. The Fugitive Economic Offenders Act, 2018, can only be invoked against offenders where the total value of scheduled offences against an individual exceeds ₹100 crore.
According to the ED and Income Tax department, Bhandari possessed undisclosed foreign income worth ₹655 crores, evading tax worth ₹196 crores. The trial court, which ruled against Bhandari on July 5, had noted that Income Tax authorities informed ED that tax evaded, along with penalty and interest, totalled more than ₹100 crores, with the tax amount alone reaching ₹163 crores. These findings were based on audits of Bhandari's numerous benami properties in India and abroad, including in Dubai and the UK.
In his petition, Bhandari has described the court order to declare him a fugitive economic offender was “premature” since the request was filed without a final assessment order by the tax authorities confirming that the alleged tax evasion exceeded ₹100 crore.
His legal team argued that ED initiated the proceedings without sufficient material evidence, insisting that the only document forming the basis of the application was a letter from the Income Tax (IT) Department in July 2019, which alleged that the proceeds of crime exceeded ₹100 crore.
Bhandari also reasoned that he couldn't be classified as FEO since the non-bailable warrants issued against him in the proceedings initiated by the IT Department under the Black Money Act (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (Black Money Act), in 2018, were executed, and he was arrested at the time and later released on bail.
In his 100-page verdict, special judge Sanjeev Aggarwal rejected this argument, observing that the warrant remained active because Bhandari had not returned to the country to face trial, and that only the court concerned possessed the power to cancel such warrants.
To be sure, Bhandari faces several investigations beyond the money laundering case. The Central Bureau of Investigation has been probing him since 2019 for alleged corruption in a ₹2,985 crore deal to procure 75 PC-7 trainer aircraft from the Swiss manufacturer Pilatus Aircraft in 2009.
He is also under investigation for allegedly laundering money for London properties linked to Robert Vadra, the businessman husband of Congress MP Priyanka Gandhi. The ED filed a supplementary chargesheet in 2023, claiming that Bhandari had renovated a London house purchased in 2009 using illicit funds allegedly connected to Vadra. Vadra has denied the allegations, terming them a political witch hunt. In connection with these allegations, the ED arrested NRI businessman CC Thampi in January 2020.
Bhandari deposited substantial amounts in overseas shell company bank accounts and invested in properties across the UAE and UK between 2009 and 2016. The court noted that he had attempted to retrospectively change the structure of Dubai's Alrahma Trust from March 2015 onwards, seeking to introduce a close associate as trustee in his place before departing for London.
Bhandari fled India in 2016 via Nepal following a search operation at his Delhi residence by Income Tax department officials. The ED initiated its money laundering probe in February 2017, filing the first chargesheet in 2020.
An Interpol red notice was issued against him in October 2017. The Indian government sent two extradition requests under money laundering and black money legislation, certified by then-UK Home Secretary Priti Patel in June 2020. British authorities arrested him on July 15, 2020, though he was released on bail pending extradition proceedings.
Westminster Court ordered his extradition to India in November 2022, but Bhandari successfully challenged this in the UK High Court. On February 28 of this year, the UK High Court discharged him in the extradition request, and an appeal filed by the Indian government against the ruling was rejected on April 4.
Source: HindustanTimes
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