The Enforcement Directorate on Friday urged the Delhi High Court to reject UK-based arms consultant Sanjay Bhandari’s challenge to a trial court order declaring him a “fugitive economic offender.”
The agency told Justice Neena Bansal Krishna that when the trial court passed its order in July, it had before it an assessment report indicating that Bhandari had secretly acquired assets worth ₹655 crore.
Defence Questions Timing Of Proceedings
Senior advocate Kapil Sibal, representing Bhandari, countered that the ED’s move was “premature” as assessment proceedings were still pending. He argued that without a completed assessment, there was no concrete basis to claim that the alleged tax evasion exceeded the ₹100 crore threshold required under the Fugitive Economic Offenders Act.
“They had no proof of a ₹100 crore liability. If assessment isn’t done, where’s the reason to believe it?” Sibal said, seeking a stay and the quashing of the trial court proceedings. He warned that once Bhandari was tagged a fugitive, he would be left without legal recourse while the ED seized property worth hundreds of crores.
ED Insists Liability Exceeds Legal Limit
Additional Solicitor General S.V. Raju, appearing for the ED, maintained that the trial court’s decision was well-founded. “On the date of the order, there was more than ₹100 crore in tax liability, with ₹196 crore in evasion. The court was aware of these facts,” he submitted. The High Court has listed the matter for hearing on August 20.
On July 5, the trial court granted the ED’s request to designate Bhandari a fugitive economic offender, enabling the agency to confiscate his assets in India. The order came shortly after a UK court refused to extradite Bhandari, effectively reducing the likelihood of his return to face trial.
Defence Cites UK Residency Rights
Bhandari’s legal team has argued that his stay in the UK is lawful under that country’s immigration rules and that India must respect the UK court’s judgment. They contended that branding him a fugitive under these circumstances was “legally untenable.” The trial court, however, had observed that a failed extradition attempt does not grant immunity from Indian law.
Bhandari, 63, left India for London in 2016, shortly after the Income Tax Department raided his Delhi premises. The ED filed its first chargesheet against him in 2020, also probing his alleged links with businessman Robert Vadra, husband of Congress leader Priyanka Gandhi Vadra.
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