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 of 2018. The declaration, based on a plea by the Enforcement Directorate (ED), is connected to a high-stakes investigation into black money and money laundering. Bhandari is accused of fleeing to the UK in 2016 as investigative agencies began scrutinizing his activities. The ED filed a criminal case of money laundering against Bhandari and others in February 2017.

The ED's case alleges that Bhandari purchased and renovated a London property in 2009 with funds provided by Robert Vadra. Vadra, who is the brother-in-law of Congress leader Rahul Gandhi, has been under investigation for alleged links to Bhandari concerning this London property purchase. Vadra has denied any involvement, dismissing the charges as a political witch hunt. He maintains that he is being hounded and harassed for political reasons.

Bhandari's legal team argued that his stay in the United Kingdom was lawful and protected, citing a decision by the London High Court that denied India's extradition request. They contended that he could not be classified as a fugitive under Indian law. However, the Delhi court rejected these arguments, ruling in favor of the ED and paving the way for the confiscation of Bhandari's assets in India and abroad.

Bhandari, a controversial figure in India's defense and arms lobby circles, is accused in a money laundering case involving Robert Vadra. The case pertains to alleged kickbacks and illicit overseas property transactions, which the ED claims were part of a complex web of financial crime. Bhandari reportedly acted as a middleman and consultant for foreign arms manufacturers seeking contracts with the Indian government.

The recent declaration of Bhandari as a fugitive economic offender is expected to strengthen India's efforts to extradite him from the United Kingdom. The ED is also expected to intensify efforts to attach and seize Bhandari's known properties and financial interests.

Robert Vadra received fresh summons last month related to the ED's chargesheet filed in 2023. The ED suspects that illicit funds obtained through defense contracts during the UPA regime were used by Bhandari to purchase properties abroad, particularly in London, with some allegedly listing Robert Vadra as the beneficial owner. Vadra has denied any wrongdoing or business association with Bhandari. He has expressed willingness to cooperate with the investigation but insists the charges are baseless and politically motivated.

Sanjay Bhandari first came under scrutiny in 2016 after Income Tax raids at his premises revealed classified defense documents and evidence of undisclosed foreign assets. Subsequent probes linked him to offshore entities and unaccounted wealth, with alleged connections to defense procurement deals. He reportedly fled to England in 2015 after legal actions were initiated against him for owing a large amount of Income Tax.