By Sulagna Halder
New Delhi, June 25, 2025:
The Canadian government has been given permission by the Delhi High Court to retrieve roughly ₹65.9 crore from bank accounts owned by businessman Sanjay Madan and his associate Vidhan Madan in India. The action is related to a multimillion dollar embezzlement case that is presently being prosecuted in Canada.
The order, which was issued Tuesday by a bench headed by Justice S. N. Thyagarajan, instructed Indian banks to freeze the corresponding accounts and prohibit any transactions without the court's consent. The court declared that "no debits or credits shall be permitted pending further orders," thereby immobilizing the defendants' assets in India.
The funds in question are linked to alleged kickbacks received by the Madans in connection with a public procurement contract in Canada. The two, according to the prosecution, used dishonest means to transfer funds overseas before rerouting some of them into Indian bank accounts. Before the Delhi High Court, Canada's legal team contended that the funds are recouped in accordance with the comity principle and are within India's responsibilities under the two countries' Mutual Legal Assistance Treaty (MLAT). They asked for a freeze on the Indian assets until the entire amount could be repatriated, and they provided proof of court orders in Canada.
In his remarks, Justice Thyagarajan noted that the defrauded amounts were "directly linked" to the criminal proceedings in Canada and acknowledged the importance of international cooperation in combating cross-border corruption. Allowing the defendants to transfer the money, he continued, would jeopardize that cooperation.
According to experts, this is a noteworthy example of asset recovery through international legal channels and shows that India is prepared to support other countries that are investigating economic crimes. It might establish a standard for MLAT-based claims in the future, supporting initiatives to track down and return illegal wealth held in Indian accounts.
The court will hold a thorough hearing after the Madans have two weeks to contest the freezing order by submitting affidavits and supporting documentation. Both Canadian and Indian officials affirmed that the order is in line with more comprehensive asset recovery and anti corruption frameworks that have been approved by the UN Convention against Corruption and the Financial Action Task Force.
The Delhi High Court's ruling highlights India's developing jurisprudence in international asset recovery and its function in blocking those who take advantage of legal loopholes to conceal corrupt gains abroad.
