Sanjay Bhandari: Court Defers Decision on ED Request to Seize Assets
Sanjay Bhandari: The Rouse Avenue Court in Delhi on Saturday reserved its decision on a request filed by the Enforcement Directorate seeking the confiscation of assets linked to arms dealer Sanjay Bhandari, who has been declared a proclaimed offender. The court is scheduled to deliver its ruling on February 16, following detailed arguments from both sides.
Court Proceedings and Timeline
Special Judge Sanjay Jindal heard submissions from the Enforcement Directorate and counsel representing the opposing side before reserving the order. The matter relates to the agency’s plea to seize properties allegedly owned or controlled by Bhandari after he was declared a fugitive economic offender under Indian law. The court noted that the issue requires consideration of both statutory provisions and pending legal challenges.
ED’s Argument for Confiscation
The Enforcement Directorate maintained that properties directly associated with Bhandari are liable to be confiscated under the Fugitive Economic Offenders Act. The agency submitted that its application was filed after Bhandari was formally declared a fugitive economic offender, a status that permits authorities to initiate asset seizure proceedings. However, the ED acknowledged that the declaration itself is currently under challenge before the Delhi High Court.
Special Public Prosecutor Naveen Kumar Matta, assisted by Mohd. Faizan, appeared for the agency. In addition, special counsel Zoheb Hossain argued that no objections had been raised so far by any individual claiming ownership or interest in the properties listed by the ED, strengthening the case for confiscation.
Properties in India and Abroad
According to the ED, the assets in question include properties located both within India and overseas. The agency informed the court that it intends to send formal requests for confiscation of properties situated outside the country, in line with legal procedures and international cooperation mechanisms.
The list presented to the court reportedly covers immovable properties in Delhi’s Vasant Vihar area, Panchsheel Shopping Complex, and Shahpur Jat, along with alleged benami properties in Noida and Gurugram. The ED also referred to bank accounts held in the names of Bhandari and his wife, as well as jewellery, cash, and properties located in Dubai and the United Kingdom.
Purpose of Fugitive Offender Law
The enforcement agency told the court that the confiscation process is designed to discourage individuals from leaving India to evade criminal prosecution. By allowing seizure of assets, the law aims to ensure accountability and prevent accused persons from benefiting from proceeds of alleged crimes while remaining outside the jurisdiction of Indian courts.
Background of Fugitive Offender Declaration
On July 5, 2025, a Delhi special court declared Sanjay Bhandari a fugitive economic offender in connection with an income tax case involving alleged undisclosed foreign assets. The order followed a plea by the Enforcement Directorate, which claimed that Bhandari had deliberately avoided Indian legal proceedings and held foreign assets exceeding Rs 100 crore.
The court had subsequently granted Bhandari time on July 12 to exhaust available statutory remedies against the declaration. With that period having passed, the ED moved forward with the next step of seeking confiscation of his properties.
Defence and Extradition Dispute
Bhandari has contested the ED’s actions, asserting that his stay in the United Kingdom is lawful and supported by judicial orders there. His counsel, senior advocate Maninder Singh, argued that the ED’s application lacked clarity, jurisdiction, and did not satisfy the legal requirements of the Fugitive Economic Offenders Act.
The defence also pointed to earlier submissions by the Income Tax Department in 2020, stating that the alleged offence did not cross the Rs 100 crore threshold. It was further argued that no fresh arrest warrants were pending against Bhandari.
UK Court Rulings
The United Kingdom’s High Court had earlier declined India’s request to extradite Bhandari, citing concerns related to his safety in Indian custody, including risks of violence and extortion. An attempt by the Indian government to challenge this decision before the UK Supreme Court was also unsuccessful. The ED, however, has maintained that the outcome of extradition proceedings abroad does not affect asset confiscation proceedings under Indian law.