A Delhi court declared UK-based arms dealer Sanjay Bhandari a Fugitive Economic Offender (FEO) on Saturday, July 5, 2025, under the Fugitive Economic Offenders Act (FEO). The order was issued by Additional Sessions Judge Sanjeev Aggarwal at the Tis Hazari court in response to a request from the Enforcement Directorate (ED). This declaration allows the ED to confiscate Bhandari's properties globally and prevents him from initiating or defending civil proceedings in India.

The court stated that while the extradition attempt by Indian agencies may have failed, it does not absolve Bhandari from facing prosecution for violating Indian laws. The FEO tag is intended to compel his return to India to face trial through the seizure of his assets and by denying him the right to pursue or defend civil claims.

The Fugitive Economic Offenders Act, enacted in 2018, aims to deter economic offenders from evading Indian law by remaining outside the jurisdiction of Indian courts. It empowers authorities to confiscate proceeds of crime and assets in cases involving amounts exceeding ₹100 crore, regardless of conviction. The court affirmed that the total value of the scheduled offense in Bhandari's case is ₹100 crore or more, meeting the criteria for declaring him a Fugitive Economic Offender.

Sanjay Bhandari is wanted in connection with an income tax case involving undisclosed foreign assets. He fled India in 2016 after being raided by the Income Tax Department and is also under investigation for money laundering. An Interpol red notice was issued against him in October 2017.

The ED has been investigating Bhandari's alleged links to Robert Vadra, the husband of Congress MP Priyanka Gandhi Vadra. The agency has alleged that Bhandari acquired a property in London in 2009 and renovated it with funds provided by Vadra, who has denied owning the property and dismissed the allegations as a political witch-hunt.

The UK High Court had discharged Bhandari from extradition proceedings. The court's decision was influenced by concerns regarding the conditions inside Tihar Jail in Delhi. Despite the failed extradition attempt, the Delhi court emphasized that this does not make Bhandari immune from prosecution under Indian law.

With this ruling, Sanjay Bhandari joins a list of individuals, including Vijay Mallya and Nirav Modi, who have been declared fugitive economic offenders by Indian courts. According to the ED and the Income Tax Department, Bhandari possesses undisclosed foreign income amounting to ₹655 crore, on which he evaded tax of ₹196 crore. Additionally, the CBI has been investigating Bhandari since 2019 for alleged corruption in a ₹2,985-crore deal involving the procurement of 75 PC-7 trainer aircraft from Swiss manufacturer Pilatus Aircraft.