ED seizes Rs 26 crore assets of Sanjay Bhandari

It said it has seized the properties "in lieu of undisclosed assets held abroad by him" and the action has been carried out under section 37A of the Foreign Exchange Management Act (FEMA).

Section 37A of the FEMA stipulates that if certain foreign exchange, foreign security or immovable property is held outside India in violation of this law, the equivalent value of asset can be seized within India.

The ED had booked Bhandari, reported to have left India for a foreign location sometime ago, under criminal charges of the PMLA law in February this year as also under the FEMA.

The Delhi Police had also booked him for alleged violation of the Official Secrets Act (OSA) last year.

Bhandari's case first came to light after the IT department conducted searches against him in April last year and recovered certain "sensitive" official defence documents from his premises.

As part of these raids, the taxman is also said to have recovered certain emails that talk about renovation of a costly apartment in London in 2010 which was allegedly owned by Robert Vadra, brother-in-law of Congress President Rahul Gandhi.

Vadra's legal firm has denied that he owned the London property directly or indirectly.

It also denied Vadra has any business ties with an arms consultant or his aides.

The tax department had last year also shared a "seizure memo record" with the defence ministry to apprise it about the contents of these "sensitive" documents.