In a major setback for New Delhi, a UK high court judge has granted Indian defence middleman Sanjay Bhandari permission to appeal his extradition to India on six grounds. The extradition requests against Bhandari, an Indian national residing in London, are related to charges of money laundering and tax evasion.
The first request, issued by the Enforcement Directorate, pertains to an intended prosecution for an offence of money laundering under the Prevention of Money Laundering Act, 2002. The second request, brought by the income tax department, concerns an intended prosecution for offences of tax evasion under the Black Money Act (BMA).
District judge Michael Snow at Westminster magistrates’ court had referred Bhandari’s case to the then home secretary, Suella Braverman, who ordered his extradition on January 12, 2023. However, Justice Pushpinder Singh Saini has now granted Bhandari permission to appeal against his extradition on the following grounds:
1. The accused offences are not extradition offences.
2. No prima facie case has been established for each offence.
3. Concerns about bail conditions in India.
Earlier, Bhandari had already received permission to appeal his extradition on the grounds of degrading prison conditions in India, the reverse burden of proof in the BMA, and the potential for long trial delays. The full appeal will be heard at a later date this year.
Bhandari, who offers consultation services through his company, Offset India Solutions, to manufacturers bidding for defence contracts with the Indian government, appeared in person at court and seemed pleased with the outcome.
Though the judge refused the ground seeking to challenge Braverman’s decision to extradite Bhandari, the defence argued that there was a risk of being prosecuted for other offences in India. They highlighted references to Delhi police investigating an alleged offence under the Official Secrets Act, 1923, the CBI investigating conspiracy to cheat and accept illegal gratification by a public servant, and the Enforcement Directorate investigating further money laundering offences.
During the proceedings, it came to light that secret and confidential documents relating to the Ministry of Defence were discovered at Bhandari’s premises in India.
Representing Bhandari, Edward Fitzgerald KC argued that the court had misunderstood the Black Money Act offence in India, mistakenly treating it as a fraud act offence. Fitzgerald also contended that the equivalent tax in the UK is income tax, whereas the tax being taxed in India under the BMA is primarily assets. He further stated that alleged admissions made by Bhandari during an income tax raid in April 2016 were inadmissible as he was not cautioned or represented by legal counsel during the interviews, which were described as oppressive.
In response, Justice Saini acknowledged that Bhandari is accused of possessing undeclared assets outside of India and failing to declare them under the BMA but expressed unawareness of equivalent offences in the UK. He agreed that Bhandari could potentially spend years in custody without the prospect of release.
For more information, read the full article from Times of India.
