Supreme Court agrees to drop criminal proceedings against fugitive Sandesara brothers if they paid Rs 5,100 crore
The Supreme Court's order, published on Friday, underscored that the central aim was the recovery of public funds.
- Nov 24, 2025,
- Updated Nov 24, 2025 4:13 PM IST
The Supreme Court on Monday agreed to drop all criminal proceedings against fugitive businessmen Nitin and Chetan Sandesara in the Sterling Biotech bank fraud case, conditional upon their payment of a one-time settlement of Rs 5,100 crore to the lender banks by December 17. The case, involving alleged bank fraud of over Rs 5,383 crore, has seen formal sanctioning of a settlement by the government.
Under the order, cases filed by the Central Bureau of Investigation, Enforcement Directorate, and under the Prevention of Money Laundering Act against the brothers and co-accused may be closed once the full amount is deposited.
The Supreme Court's order, published on Friday, underscored that the central aim was the recovery of public funds. The bench noted, "Since inception, this Court was of the view that if the petitioners are ready to deposit the amount as settled in OTS and public money comes back to lender banks, the continuation of the criminal proceedings would not serve any useful purpose. The tenor of the proceedings apparently indicate peculiarity, with intent to protect the public money and interest and to get deposited the defalcated amount."
The relief granted is confined to the specific facts of the Sandesara case and cannot be used as a precedent in future cases. The bench stated that the order was tailored to the peculiar circumstances present, focusing on public interest and maximising the recovery of defrauded funds.
The Sandesara brothers, promoters of Vadodara-based Sterling Biotech, fled India in 2017 on Albanian passports after accusations of defaulting on bank loans. The Sandesara Group’s companies, with interests spanning pharmaceuticals to energy, secured substantial loans from a consortium led by Andhra Bank, UCO Bank, State Bank of India, Allahabad Bank, and Bank of India.
Investigations revealed that the loans, amounting to thousands of crores, were allegedly diverted for unauthorised purposes and laundered through a complex network of domestic and offshore entities. Authorities have alleged that the loan proceeds not only financed the group's Nigerian oil business but were also used for personal gain.
In response to the settlement proposal, the brothers’ lawyer, Mukul Rohatgi, informed the Court his clients were prepared to pay the agreed amount "to get rid of all proceedings", and requested the quashing of all cases.
The ED previously attached properties worth Rs 9,778 crore belonging to the Sandesara Group in connection with the case. The brothers are among 14 designated fugitive economic offenders under Indian law, which allows for asset freezing.
The Supreme Court on Monday agreed to drop all criminal proceedings against fugitive businessmen Nitin and Chetan Sandesara in the Sterling Biotech bank fraud case, conditional upon their payment of a one-time settlement of Rs 5,100 crore to the lender banks by December 17. The case, involving alleged bank fraud of over Rs 5,383 crore, has seen formal sanctioning of a settlement by the government.
Under the order, cases filed by the Central Bureau of Investigation, Enforcement Directorate, and under the Prevention of Money Laundering Act against the brothers and co-accused may be closed once the full amount is deposited.
The Supreme Court's order, published on Friday, underscored that the central aim was the recovery of public funds. The bench noted, "Since inception, this Court was of the view that if the petitioners are ready to deposit the amount as settled in OTS and public money comes back to lender banks, the continuation of the criminal proceedings would not serve any useful purpose. The tenor of the proceedings apparently indicate peculiarity, with intent to protect the public money and interest and to get deposited the defalcated amount."
The relief granted is confined to the specific facts of the Sandesara case and cannot be used as a precedent in future cases. The bench stated that the order was tailored to the peculiar circumstances present, focusing on public interest and maximising the recovery of defrauded funds.
The Sandesara brothers, promoters of Vadodara-based Sterling Biotech, fled India in 2017 on Albanian passports after accusations of defaulting on bank loans. The Sandesara Group’s companies, with interests spanning pharmaceuticals to energy, secured substantial loans from a consortium led by Andhra Bank, UCO Bank, State Bank of India, Allahabad Bank, and Bank of India.
Investigations revealed that the loans, amounting to thousands of crores, were allegedly diverted for unauthorised purposes and laundered through a complex network of domestic and offshore entities. Authorities have alleged that the loan proceeds not only financed the group's Nigerian oil business but were also used for personal gain.
In response to the settlement proposal, the brothers’ lawyer, Mukul Rohatgi, informed the Court his clients were prepared to pay the agreed amount "to get rid of all proceedings", and requested the quashing of all cases.
The ED previously attached properties worth Rs 9,778 crore belonging to the Sandesara Group in connection with the case. The brothers are among 14 designated fugitive economic offenders under Indian law, which allows for asset freezing.