UK-based arms consultant Sanjay Bhandari declared a fugitive economic offender

“…the ED has been able to make out a case under Sections 2(f) and 2(m) of the FEO (Fugitive Economic Offenders) Act…this Court is satisfied that the individual Sh. Sanjay Bhandari, against whom an warrant of arrest i.e. NBW (non bailable warrant) has been issued…has left India so as to avoid criminal prosecution…despite knowing the pendency of the NBWs against him,” said Judge Sanjeev Aggarwal in the order.

After the Income Tax department raided him in 2016, Bhandari, now 63, fled to London. A year later, the ED filed a criminal case against him under the anti-black money law of 2015. The agency is also probing Bhandari’s links with businessman Robert Vadra, the husband of Congress MP Priyanka Gandhi Vadra.

“Further, this court is satisfied that the total value of the schedule offence is `100 crore or more…,” the court said.

The principal allegation against Bhandari was that he owned certain assets worth Rs 100 crores abroad which he did not disclose to the I-T authorities. The ED had argued that Bhandari consistently chose not to return to India. The ED also submitted that the UK court’s decision to disallow Bhandari’s extradition would not be binding on the proceedings in the Delhi court.

Bhandari’s legal team, while opposing the ED’s move to get him declared a fugitive offender, claimed that its “client’s stay could not be called illegal in the UK as he has a legal right to reside in the UK and the GOI is bound by the judgment of the UK court…. Bhandari is legally living there, and declaring him a ‘fugitive’ in that scenario is legally wrong”.

The court said the “extradition attempt may have failed, but it will not make the accused an angel or immune to prosecution for the violation of Indian laws”.

Bhandari had alleged that he was subjected to undue harassment and pressure from various enforcement agencies to “compel him to give false statements against the political opponents of the government” and that it was because of this harassment that he was forced to leave India.

“In any case, those who play with fire should be known to be aware of its consequences,” it said.

The court held that the undisclosed foreign income or assets of Bhandari were worth Rs 655 crore and the total tax evaded by him, including penalty and interest, was Rs 196 crore. The ED filed its first chargesheet against him in 2020. The ED filed a supplementary chargesheet in the case in 2023, alleging that Bhandari “acquired” the 12, Bryanston Square house located in London in 2009 and got it renovated “as per the directions of Robert Vadra and the funds for renovation were provided by Robert Vadra”.

Vadra has denied owning any London property directly or indirectly. He has termed these charges a political witch-hunt against him and claimed that he is being “hounded and harassed” to subserve political ends.

With this order, a total of 16 people, including liquor baron Vijay Mallya and diamond trader Nirav Modi, have been declared fugitive economic offenders by different courts. Bhandari’s assets worth about Rs 21 crore have been attached by the ED under the PMLA.