NEW DELHI: The Delhi High Court has granted interim relief to the Government of Canada in a civil recovery suit involving a large-scale financial fraud allegedly orchestrated by a former Ontario government official, directing the repatriation of funds traced to India and issuing protective orders to preserve assets.
Filed under Section 84 of the Code of Civil Procedure, the suit marks one of the first known instances of a foreign sovereign pursuing civil remedies in Indian courts to recover public funds diverted across borders.
The suit concerns the conviction of Sanjay Madan, a former senior IT executive in Ontario’s Ministry of Education, in connection with the misuse of COVID-19 relief programs and a kickback scheme linked to government contracts. Canadian investigations concluded that over Rs 200 crore had been fraudulently transferred to India through formal and informal financial systems, where the funds were subsequently used to acquire real estate and other investments.
The suit, which runs over 24,000 pages, is grounded in the findings of a five-year, multi-jurisdictional investigation involving extensive financial tracing.
In its recent order, Justice Manmeet Pritam Singh Arora directed one of the principal defendants to initiate the repatriation of Rs 65.9 crore, which the defendant has admitted remains in India. Several Indian banks were also instructed to disclose additional details and assist in enabling recovery. The Court further issued interim measures to prevent the concealment or transfer of assets, thereby safeguarding the claims of the Canadian government.
Clavius Legal, a New Delhi-based law firm, is representing the Government of Canada in the case.
Further hearings are scheduled in the coming weeks.
