Delhi High Court Greenlights Canada's Rs 65.9 Crore Recovery from Indian Bank Accounts

The Delhi High Court has given the nod for the Canadian government to retrieve Rs 65.9 crore from the Indian bank accounts of Sanjay Madan, a former Canadian bureaucrat of Indian origin, and his accomplices. This decision is connected to a high-profile embezzlement case currently being tried in Canada, valued at several crores.

In an order passed on June 23, Justice Manmeet Pritam Singh Arora directed IndusInd Bank and RBL Bank to finalize the Know Your Customer (KYC) procedures before releasing the funds. Additionally, all transactions from Madan's Indian accounts are to be blocked, except for those permit remittances and legal fee payments supported by proper documentation.

Sanjay Madan, appearing via video link, did not contest the fund transfer, acknowledging Rs 38 crore and Rs 29 crore held in his IndusInd and RBL accounts respectively. This action follows a Rs 290 crore fraud case involving Madan, accused of orchestrating a CAD 47.4 million fraud using shell companies from 2011 to 2020.

Madan was sentenced to ten years in April 2023 after a guilty plea, agreeing to repay CAD 30 million immediately and the remainder over the next 15 years. The Canadian government pursued the recovery through Section 84 of India's Code of Civil Procedure, 1908, allowing international legal action with official consent.

Furthermore, the court instructed several other Indian banks, including YES Bank, Kotak Mahindra, Axis Bank, ICICI Bank, IDBI Bank, and Punjab National Bank, to submit affidavits on account holdings. Sanjay and co-accused Vidhan Madan are also required to disclose all assets in India.

(With inputs from agencies.)