Our Bureau
New Delhi
The Delhi High Court has allowed the Government of Canada to continue its civil recovery proceedings in India against former Ontario government official Sanjay Madan and others over millions of dollars allegedly transferred to India through fraudulent schemes.
Justice Vikas Mahajan rejected Madan’s preliminary challenge seeking dismissal or return of the Canadian government’s suit. The ruling enables Canadian authorities to pursue the alleged proceeds through Indian courts, including efforts to trace funds and assets linked to bank accounts in India.
The case originates from a fraud investigation in Canada involving Madan, who previously worked with Ontario’s Ministry of Education. According to the case records, he pleaded guilty in 2023 to offences connected with fraudulent activities and kickback arrangements carried out over several years.
Canadian authorities have alleged two major fraud schemes. One involved Ontario’s Support for Families Program, under which more than 78,000 allegedly fraudulent applications resulted in payments exceeding 10.8 million Canadian dollars. The other allegedly involved kickbacks connected with government IT consulting contracts between 2011 and 2020.
Investigators claim that proceeds from the schemes were moved to India and used to acquire assets. Substantial amounts were allegedly traced to accounts belonging to Madan and his wife, with Canada claiming that about CAD 33.3 million remains unrecovered in India.
A key issue before the Delhi High Court was whether Indian courts had jurisdiction. The court noted that the alleged proceeds were transferred into bank accounts in Delhi and that several financial institutions within the city were involved in the proceedings. It therefore held that sufficient grounds existed for the case to be heard in Delhi.
The court also rejected the argument that Canada should seek recovery exclusively through Canadian courts. Since Canada is not recognised as a reciprocating territory under Section 44A of the Civil Procedure Code, a Canadian decree cannot simply be executed in India.