A Delhi court has allowed the Enforcement Directorate (ED) to proceed with the confiscation of assets belonging to fugitive arms dealer Sanjay Bhandari, despite his relief from extradition in the United Kingdom. The order strengthens India’s legal action against economic offenders who remain outside its jurisdiction.
Court Permits Confiscation Under Fugitive Law
The Rouse Avenue Court permitted the confiscation of properties linked to Bhandari under the Fugitive Economic Offenders (FEO) Act. The court observed that since Bhandari has already been declared a fugitive economic offender, he no longer has the right to contest confiscation proceedings for properties held in his name.
Special Judge Sanjay Jindal ruled that assets identified as directly owned by Bhandari would stand confiscated by the Central government in accordance with legal provisions. The court divided the properties into categories, allowing immediate confiscation of some while keeping others under review pending further verification.
FCRF Academy Launches Premier Anti-Money Laundering Certification Program
Assets Include Properties, Bank Accounts and Valuables
Investigations by the ED have identified multiple movable and immovable assets linked to Bhandari, including properties in India and financial holdings. These include houses, bank accounts, jewellery, and cash assets, cumulatively valued at over ₹30 crore.
The court noted that properties allegedly held through intermediaries or “benamidars” would require additional scrutiny. Notices had been issued to individuals and entities connected to such assets, and further hearings are scheduled to determine their status.
Case Linked to Undisclosed Foreign Assets
The money laundering case stems from allegations that Bhandari failed to disclose substantial foreign income and assets to Indian tax authorities. Investigators claim he held overseas bank accounts and properties without proper declaration, violating provisions of the Black Money Act.
The ED initiated proceedings based on inputs from the Income Tax Department, which had earlier conducted searches and recovered digital evidence related to foreign assets, including a London property.
Extradition Relief Does Not Halt Domestic Proceedings
Bhandari, who left India in 2016 following tax investigations, is currently based in London. A UK court had earlier denied his extradition to India on legal grounds. However, Indian authorities clarified that the extradition outcome does not impact domestic proceedings under Indian law.
Officials emphasised that the FEO framework allows confiscation of assets to deter individuals from evading prosecution by remaining abroad. The court’s decision reinforces the principle that economic offenders cannot retain control over assets while avoiding trial in India.
