A United Kingdom Magistrate court on November 7, 2022 cleared the request for extradition of middleman Sanjay Bhandari to India — in connection with the money laundering and tax evasion charges — for a final decision by the Secretary of State. The accused may challenge the verdict in a higher court of appeal.
“As I am satisfied that extradition is compatible with the defendant’s Convention rights, I must send this case to the Secretary of State for a decision as to whether the defendant is to be extradited,” said District Judge Michael Snow in his order related to two requests of the Indian government for Mr. Bhandari’s extradition.
The first plea, sent on April 15, 2020, pertained to the money laundering offence being investigated by the Enforcement Directorate (ED) and the second dated June 2, 2021, was about the allegations of tax evasion under the Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act and the Income Tax Act. The money laundering case was based on the Income Tax Department’s findings.
The first part of the hearing had taken place between March 3-9, 2022. The Indian government submitted that Mr. Bhandari had allegedly acquired significant income outside India and bought assets in overseas territories without making disclosure of the same to the Indian tax authorities. Also, he did not avail himself of a one-time “compliance opportunity” provided between July 1, 2015, and September 30, 2015, with respect to the Black Money Act.
Offshore entities
The probe agencies alleged that funds were disguised in properties held through various offshore entities based in the British Virgin Islands and Panama. During the check period, Mr. Bhandari allegedly owned a flat in London and a Burj Khalifa flat in Dubai. He had earlier incorporated Santech International FZC, Offset India Solutions FZC and Petro Global Technologies Limited in the UAE, they alleged. Besides, he was allegedly the beneficiary owner of Jersey-based MVD Global/Vertex Management Holdings Limited.
The Income Tax Department, which had searched Mr. Bhandari’s premises on April 27, 2016, alleged that he created false and backdated documents — in collusion with a relative and partner, Sumit Chadha, accountant Sanjeev Kapoor and lawyer Anirudh Wadhwa, — to distance himself from the ownership of the assets to evade payment of taxes.
“It is alleged that the deception involved seeking to hold assets in the capacity of trustee of a trust called ‘Alrahama Trust’ and transferring the trusteeship of the trust to Mr. Chadha, purportedly (and misleadingly) on a date prior to the date on which the Black Money Act 2015 came into existence,” as noted in the order.
In April 2016, the Department said, the accused was confronted with evidence of his ownership of several foreign assets, which he admitted. On September 22, 2016, the agency issued a notice to him for non-disclosure of income and sought certain information. However, as alleged, he instead left for the U.K.
“It is alleged that the undisclosed foreign income amounted to approximately £64,857,062 and that the tax evaded amounted to approximately £19,558,295. It is alleged that the defendant falsely informed the Income Tax authorities that he had no foreign income. I have no doubt that it can be properly inferred that he intended to make a gain by doing so,” said the order.
Other cases
Mr. Bhandari faces investigations in some other cases. In July 2020, the ED booked him along with South Korea-based Samsung Engineering Co. Limited (SECL) and others in connection with an October 2007 “illegal” consultancy agreement for a Gujarat-based project worth ₹6,744.32 crore, based on a First Information Report filed by the Central Bureau of Investigation.
Among the suspects were unknown officials of ONGC Petro Additions Limited, Santech International FZC in the UAE and Foster Wheeler Energy Limited (FWEL)-U.K. The accused had received $50 lakh from SECL in June 2009 for the job.
His alleged role is also being probed in several defence contracts. In June 2019, the CBI had registered a case against him and others for alleged corruption in the ₹2,895 crore deal of 75 Pilatus basic trainer aircraft in 2009.
