New Delhi [India], July 31 : Justice Girish Katpalia of the Delhi High Court on Wednesday recused himself from hearing a petition filed by UK-based arms consultant Sanjay Bhandari, who is facing charges of tax evasion and money laundering.
The petition challenges a trial court order that declared him a Fugitive Economic Offender under the provisions of the Fugitive Economic Offenders (FEO) Act, 2018.
Following Justice Katpalia's recusal, the matter has been referred back to the Chief Justice for allocation to a different bench.
During the hearing, senior advocate Kapil Sibal appeared for Bhandari, while Advocate Zoheb Hossain represented the Enforcement Directorate (ED).
During arguments, Sibal submitted, "Once I'm declared a fugitive, I lose the right to avail legal remedies," urging the court to stay the trial court's order. He added that Bhandari's properties would be seized as a consequence of the FEO designation, and thus, the order must be stayed.
The ED strongly objected to the plea. Advocate Hossain, appearing for the agency, argued that deference to the trial court's order cannot be granted merely on request. "The only objective of the FEO Act is that this man comes back to India to face the law," Hossain said. He opposed even the issuance of notice on the stay application.
Earlier this month, a Delhi Special Court declared Sanjay Bhandari a Fugitive Economic Offender under the FEO Act. The order, passed by Additional Sessions Judge Sanjeev Aggarwal, came in response to a plea by the ED, which alleged that Bhandari had willfully evaded legal proceedings in India and held undisclosed foreign assets exceeding Rs 100 crore.
The ED emphasised that the UK court's refusal to extradite Bhandari had no bearing on the Indian proceedings, which are governed solely by Indian law.
However, Bhandari, through his counsel, has challenged the ED's application. He argued that his stay in the UK is lawful and protected by a London High Court ruling, which blocked his extradition on the grounds of potential threats to his safety in Tihar Jail.
Senior Advocate Maninder Singh, who earlier appeared for Bhandari, termed the ED's plea as vague, lacking jurisdiction, and not meeting the threshold set under the FEO Act. He also contended that the value of the alleged offence, based on a 2020 Income Tax Department submission, did not cross Rs 100 crore. Additionally, Singh pointed out that the UK High Court had discharged Bhandari, and no fresh warrants were pending against him.
The Indian government's attempts to overturn the UK court's extradition ruling in Britain's Supreme Court were also unsuccessful.