Sanjay Shah to face new Dubai court hearing as prosecutors seek extradition

New panel of judges will hear case of hedge fund trader wanted in Denmark in connection with alleged $1.7 billion tax fraud

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  Sanjay Shah, pictured in his Dubai home in 2017, was detained by police in June 2022. Denmark's tax authority says he defrauded the Danish state of $1.7bn through a complex scheme known as cum ex trading. Antonie Robertson / The National

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  Shah pictured in 2020. He admits making huge sums of money through cum ex trading in Denmark but denies he broke any laws, which the Danish government disputes. Antonie Robertson / The National

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  Justin Bieber performs at the Autism Rocks Arena in Dubai in 2016. Sanjay Shah ran the arena, which was named after a UK-registered autism charity that he founded. The charity and arena are no longer operating. Chris Whiteoak / The National

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  Abdullah Al Nuaimi, Minister of Justice, in June said Shah's arrest was a clear sign of the commitment to disrupting organised crime. In the past two years there has been a spate of arrests and extraditions of alleged criminals. Victor Besa / The National

Dubai Court of Cassation on Monday referred the extradition case against British hedge fund trader Sanjay Shah back to the appeal court to be heard by a new panel of judges.

Last month, Dubai Court of Appeal refused Denmark’s request for the extradition of Mr Shah, over a lack of original official documentation.

The following week, Dubai's attorney general Essam Issa Al Humaidan appealed against the ruling, which allowed Sanjay Shah to remain in the emirate, to the Court of Cassation.

This is the highest court in the three-tier system.

In a hearing on Monday, the court said the initial ruling was flawed in terms of legal procedures as it lacked the signature of the chief of the court that issued the verdict.

The court referred the case back to the appeal court.

“We will be representing Mr Shah in the next stage of proceedings, the Court of Appeal, which will consist of a different panel of judges to those that have been involved in proceedings so far,” said Ali Al Zarouni, Mr Shah's lawyer.

“Both we and Mr Shah have full confidence in the legal system of the UAE.”

Mr Shah, a British citizen who lived on The Palm Jumeirah, is wanted by Danish prosecutors over an alleged $1.7 billion tax fraud.

He is accused of being the central player in a scheme in which foreign businesses pretended to own shares in Danish companies and claimed tax refunds for which they were not eligible.

In January, Mr Shah, denied the charges and said he was operating within Danish law.

An international warrant for his arrest was received by Dubai Police on January 7 and he was arrested five months later in the emirate's Al Rafaa district.

The arrest came after the signing of an extradition agreement between the UAE and Denmark in March.

Separately, judges in Dubai presiding over a civil lawsuit filed by the Danish government ruled that Mr Shah must repay $1.25bn to the Danish state.