Months after he went off the radar, controversial defence middleman Sanjay Bhandari, under investigation for possessing classified documents of the Defence Ministry, was spotted in London by a television news channel.
The Delhi Police registered a case against him under the Official Secrets Act on October 16, 2016, after Income Tax officials recovered a set of secret documents from his Defence Colony residence last April.
The Income Tax Department impounded his passport to ensure that he did not travel abroad. However, he allegedly managed to slip out of the country via Nepal. The CBI has forwarded to the Interpol the Delhi Police’s request for issuance of a Red Notice against him.
Earlier this month, the Enforcement Directorate registered a money laundering case against him. The I-T Department is investigating the allegations under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The ED had summoned him for recording a statement. However, he did not appear before the investigation team. He also avoided some of the summons from the I-T Department before he vanished.
I-T authorities suspect that he has shifted a significant part of his assets to the ownership of a Dubai-based trust. Based on documents recovered from Mr. Bhandari’s chartered accountant, who was recently intercepted while returning from London, the I-T authorities suspect that several properties owned by Mr. Bhandari in India and elsewhere were transferred to the ownership of the Dubai trust.
Officials said the trust was owned by a resident in official filings, while it is alleged that Mr. Bhandari is its executioner. It is standard practice in tax havens to have local residents to act as owners or professional directors, while the real beneficiaries remain behind secret agreements.
Mr. Bhandari dabbles in consultancy and liaison services in the defence sector. The official said the I-T Department had also sent to the Home Ministry what it said were a set of “classified” documents on major defence procurements under way. These were reportedly seized from Mr. Bhandari’s premises. He is known for his proximity to key people, both when the United Progressive Alliance was in power and now when the National Democratic Alliance is at the helm.
Escape plan
A senior Home Ministry official reiterated on Monday that Mr. Bhandari did not leave from any Indian port and had he done so, he would have been intercepted as there is a look-out circular against him. India may also seek Nepal’s help to foil escape bids of criminals through that country. The government is exploring the option of approaching Nepal to have more stringent checks on people against whom India has issued look-out notices, a Home Ministry official said.
India and Nepal have an open border which allows free movement of each other’s citizens.
