In a major relief to the Sandesara brothers, the Supreme Court has agreed to drop all criminal proceedings against fugitive businessmen Nitin and Chetan Sandesara. The apex court has allowed the court proceedings to be withdrawn if the promoters of Sterling Biotech Ltd and Sterling SEZ & Infrastructure Ltd, agree to pay one-third of their dues in a bank fraud case.
The Supreme Court on Friday, allowed the closure of criminal cases against former directors of Sterling Biotech on the condition that they deposit Rs 5,100 crore by December 17, 2025. A Bench of Justice JK Maheshwari and Justice Vijay Bishnoi directed the amount be distributed among the consortium of lender banks in proportion to the dues owed to them. The court said the payment would constitute a full and final settlement of the loan dispute, bringing an end to all related criminal and investigative proceedings.
What did the SC say?
“In consequence of the above, the litigation with respect to the loan amount of the petitioners for which the FIR was registered and the one-time settlements (OTS) was sanctioned and approved, shall be put to an end by way of full and final settlement as per consensus, and this litigation shall be put to quietus,” the top court stated. The court emphasised that the decision was taken in light of the “peculiar facts” of the matter and should not be treated as a precedent. “These directions as issued are in peculiar facts of this case, therefore, they shall not be treated as precedent,” the court added.
It is noted that the Sandesara brothers agreed to the proposal put forth by Solicitor General Tushar Mehta on behalf of the government. The settlement involves the quashing of all cases filed against them by the CBI, the Directorate of Enforcement, the Serious Fraud Investigation Office, the income tax department, as well as proceedings under the Prevention of Money Laundering Act, the Black Money Act, and the Fugitive Economic Offenders Act.
What’s the case?
The billionaire brothers were accused of defrauding Indian banks of more than $1.7 billion, through fabricated documents, shell entities, and the diversion of loan funds. They had fled the country in 2017 on Albanian passports. They were declared as fugitive economic offenders in connection with a case related to Rs 8,100 crore bank fraud case in 2020. Sandesara brothers were included in the list of 14 fugitive economic offenders, along with Kingfisher Airlines’ founder, Vijay Mallya, and diamantaires Nirav Modi and Mehul Choksi.
Does this open doors for Mallya, Nirav?
While the Apex court clarified that the decision was based on the specific circumstances of the case and should not be viewed as a precedent for the future. Many experts say the ruling will have profound implications and could impact cases involving other fugitives like Nirav Modi and Vijay Mallya, who may seek similar relief.
