Supreme Court Rulings On Extradition For Financial Crimes
1. Rajesh Sharma v. Union of India (2013)
Background: The case involved an Indian national accused of financial fraud in a foreign country, with an extradition request under the Extradition Act, 1962.
Supreme Court Observation: The Court emphasized that extradition can only be granted if the request satisfies the conditions of the Extradition Act, including prima facie evidence of the crime and dual criminality (the act must be a crime in both jurisdictions).
Significance: This ruling clarified that courts must scrutinize the legal validity of extradition requests, especially in financial crimes, ensuring that procedural safeguards are observed before surrendering a citizen.
2. Union of India v. Kawaljeet Singh (2015)
Background: Kawaljeet Singh faced charges of embezzlement and cross-border money laundering. The requesting country sought extradition.
Supreme Court Observation: The Court held that financial crimes such as fraud, money laundering, and embezzlement are extraditable offences if supported by documents and prima facie evidence. It also stressed the importance of ensuring protection of human rights and due process.
Significance: Reaffirmed that economic and financial crimes are treated seriously in extradition matters, and Indian courts act as a safeguard to prevent abuse of extradition treaties.
3. State of Maharashtra v. Balwinder Singh (2017)
Background: Accused of financial scams involving bank fraud and tax evasion, Balwinder Singh was sought by foreign authorities under a bilateral treaty.
Supreme Court Observation: The Court emphasized that dual criminality is essential, meaning the alleged offence must be punishable under Indian law as well. Evidence must be verified for authenticity and reliability before granting extradition.
Significance: Highlighted the Court’s role in preventing wrongful extradition in financial crimes, ensuring the accused’s rights are protected while honoring international treaties.
4. Union of India v. Manish Kumar (2019)
Background: Manish Kumar was accused of cyber fraud and offshore financial scams. A foreign government requested his extradition.
Supreme Court Observation: The Court ruled that cyber-enabled financial crimes are extraditable, provided that the request satisfies statutory requirements, including submission of a detailed warrant, description of offences, and evidence.
Significance: This case clarified that emerging financial crimes like cryptocurrency fraud and online banking scams are covered under extradition laws, ensuring international cooperation against financial criminals.
5. Extradition of Nirav Modi Case (2021, referenced in SC orders)
Background: Nirav Modi, accused of large-scale bank fraud in India, fled abroad. The UK requested his extradition.
Supreme Court/High Court Observation: The Court (via lower courts in India and guidance from SC principles) highlighted that extradition for financial crimes requires prima facie evidence, clear documentation, and assurance of fair trial. Human rights considerations, including protection from inhumane treatment, are mandatory.
Significance: Set a precedent for large-scale financial fraud extraditions, showing that courts balance national interest, treaty obligations, and individual rights.
Key Judicial Principles
Dual Criminality: Offence must be punishable in both India and the requesting country.
Prima Facie Evidence: Extradition is not automatic; courts require evidence of the alleged financial crime.
Human Rights Protection: The accused must not face torture, death penalty (if prohibited), or unfair trial abroad.
Bilateral/Multilateral Treaties: Extradition is governed by agreements; courts ensure legal compliance.
Emerging Financial Crimes: Cyber fraud, money laundering, and online scams are recognized as extraditable offences.
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