In a significant international legal development, the Delhi High Court has granted permission to the Canadian government to recover ₹65.9 crore from the Indian bank accounts of Sanjay Madan, an Indian-origin former Canadian bureaucrat convicted in a major embezzlement case.
The order was passed by Justice Manmeet Pritam Singh Arora on June 23, directing IndusInd Bank and RBL Bank to complete Know Your Customer (KYC) formalities prior to remitting the funds. The court also froze all other transactions from Madan’s Indian accounts, permitting exceptions only for legal fees and court-sanctioned remittances.
Appearing via video conference, Sanjay Madan consented to the fund transfer. His counsel disclosed that his accounts contained ₹38 crore in IndusInd Bank and ₹29 crore in RBL Bank, with no objections to the remittance.
📌 Background
Sanjay Madan, a former IT director in Ontario’s Ministry of Education, is at the center of a ₹290 crore (CAD 47.4 million) COVID-19 relief fraud that took place between 2011 and 2020. He used shell companies and manipulated pandemic relief programs to siphon off funds.
Madan was sentenced to 10 years in prison by a Canadian court in April 2023, following a guilty plea. As part of his plea deal, he agreed to repay CAD 30 million and return the remaining amount over the next 15 years. Non-compliance could add six more years to his sentence.
🏛️ Legal Basis in India
The Canadian government filed the suit under Section 84 of the Code of Civil Procedure, 1908, which permits foreign states to initiate legal proceedings in India, provided official consent is granted.
The court has also asked YES Bank, Kotak Mahindra Bank, Axis Bank, ICICI Bank, IDBI Bank, and Punjab National Bank to file affidavits disclosing any other accounts or assets linked to Madan and his associate Vidhan Madan.
Both accused have been ordered to submit detailed disclosures of all movable and immovable assets held in India.
This marks a rare instance of successful cross-border recovery enforcement, showcasing growing cooperation between Indian and foreign authorities in tackling global financial crimes.