fraud recovery – Bharat Pulse News

In a landmark order highlighting cross-border judicial cooperation, the Delhi High Court has directed the recovery and transfer of ₹65.9 crore from Indian bank accounts of convicted individuals Sanjay Madan and Vidhan Madan to the Canadian government. The ruling follows a massive fraud case involving embezzlement of public funds from the Ontario provincial government. Sanjay Madan, an Indian-origin former official in the Ontario Ministry of Education, was sentenced to 10 years in prison in 2023 for orchestrating a scheme that siphoned off CAD 47.4 million (approximately ₹290 crore) through fraudulent payouts under the Support for Families program during the COVID-19 pandemic. He also admitted to awarding inflated IT contracts in exchange for kickbacks, with funds routed to India via associates, including Vidhan Madan. During the virtual court hearing in Delhi, Sanjay Madan accepted the court's jurisdiction and confirmed that the IndusInd and RBL bank accounts held sufficient funds to comply with Canada's recovery request. He pledged cooperation in reactivating the accounts, completing Know Your Customer (KYC) formalities, and facilitating the transfer process. High Court Orders Immediate Compliance The High Court instructed both banks to complete necessary verification and transfer the ₹65.9 crore to an account held by the Canadian Crown. Additionally, it placed an embargo on the Madans, barring them from selling or transferring any movable or immovable assets in India or abroad until the full recovery is effected. This directive aligns with the terms of a plea deal Sanjay Madan had entered into with Canadian prosecutors, under which he agreed to repay CAD 30 million upfront and the rest over 15 years. The Delhi High Court’s intervention ensures that funds stashed in India become part of that restitution. Strengthening Transnational Legal Action The ruling marks a significant example of transnational legal enforcement, where Indian courts are actively supporting international restitution claims in financial crime cases. Authorities in both countries coordinated efforts to trace, freeze, and now repatriate the funds misappropriated during the height of the pandemic. The next hearing on the matter has been scheduled for September 2, during which compliance updates and final transfer confirmations are expected. The court’s strong stance has been viewed as a critical step in cracking down on international financial fraud routed through Indian banking channels.

Delhi HC Directs ₹65.9 Crore Recovery to Canada from Convicts’ Accounts

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