A Delhi special court on Saturday declared UK-based arms dealer Sanjay Bhandari a Fugitive Economic Offender under the Fugitive Economic Offenders Act, 2018, in connection with an income tax case involving undisclosed foreign assets.
Court’s Ruling
The declaration was made by Additional Sessions Judge Sanjeev Aggarwal following a plea by the Enforcement Directorate (ED). The ED alleged that Bhandari had deliberately evaded Indian legal proceedings and owned foreign assets exceeding ₹100 crore.
The court held that the extradition proceedings in the UK had no impact on the FEO proceedings in India, which are independent and governed solely by Indian law.
ED’s Allegations
The ED contended that, Bhandari had intentionally avoided court proceedings in India.
He had amassed foreign assets surpassing ₹100 crore, violating income tax laws.
His presence in the UK should not shield him from accountability under Indian legal frameworks.
Special Public Prosecutor Zoheb Hossain represented the ED in court.
Defence Arguments
Bhandari, through senior advocate Maninder Singh, opposed the ED’s plea, claiming:
His residence in the UK is legal and supported by a ruling of the London High Court, which denied India’s extradition request due to safety concerns related to incarceration in Tihar Jail.
The ED’s application was vague, lacked jurisdiction, and failed to meet the legal requirements under the FEO Act.
The alleged economic offence did not meet the ₹100 crore threshold required under the Act, citing a 2020 Income Tax Department submission.
No fresh warrants were pending against him in India, and the UK High Court had discharged him from extradition proceedings.
Background
The UK High Court had earlier blocked Bhandari’s extradition on human rights grounds, expressing concerns over potential risks of extortion and violence in Indian custody. The Indian government’s subsequent appeal to the UK Supreme Court was also dismissed.
Significance Of FEO Declaration
Under the FEO Act, individuals declared fugitives can have their properties — in India and abroad — confiscated by Indian authorities. The law targets economic offenders who flee the country to avoid criminal prosecution and have committed offences involving amounts over ₹100 crore.
Despite the UK court’s refusal to extradite, the Indian court’s declaration marks a significant step in ongoing efforts by Indian agencies to hold economic fugitives accountable through domestic legal channels.
The case marks yet another high-profile use of the FEO Act after its application against other economic offenders such as Vijay Mallya, Nirav Modi, and Mehul Choksi.
Read More: Supreme Court, Delhi High Court, States High Court, International
