In a landmark decision, the Supreme Court of India has permitted the dropping of criminal proceedings against fugitive businessmen Nitin and Chetan Sandesara, along with their associates, in exchange for a one-time settlement of ₹5,100 crore. This unprecedented order provides a potential resolution to a multi-crore bank fraud case involving the Sandesara brothers, promoters of Sterling Biotech Ltd.
The Supreme Court bench, consisting of Justices JK Maheshwari and Vijay Bishnoi, delivered the judgment on November 19, stating that the continuation of criminal proceedings would be futile, especially considering the return of public funds to the lender banks. The court order specified that the quashing of proceedings is contingent upon the Sandesaras depositing ₹5,100 crore on or before December 17, 2025, marking it as a full and final settlement with the lender banks and investigating agencies.
The settlement figure was determined by the Central Government after consulting with various agencies involved in pursuing cases against the Sandesaras. The government assured the court that it would have no objections to quashing the criminal proceedings against the accused, given the agreed-upon settlement. The Supreme Court has clarified that this order should not be treated as a precedent. However, it could potentially influence similar cases involving fugitives like Nirav Modi and Vijay Mallya, who might seek comparable relief.
The Sandesara brothers, accused of defaulting on loans from domestic banks, fled India in 2017 using Albanian passports. They have consistently denied any wrongdoing. Their companies spanned various sectors, including pharmaceuticals and energy.
Mukul Rohatgi, the lawyer representing the Sandesaras, informed the court that his clients were willing to settle in order to bring an end to all proceedings and requested the court to quash all proceedings. The court noted Rohatgi's assertion that the brothers were ready to settle "to get rid of all proceedings".
The Sandesaras are among 14 individuals designated as fugitive economic offenders under a 2018 law that allows for the freezing of assets. Other notable figures in this category include Vijay Mallya and Nirav Modi, who also face accusations of bank fraud.
While facing fraud charges in India, the Sandesara brothers have established a strong presence in Nigeria. Their company, Sterling Oil Exploration and Energy Production, contributes significantly to Nigeria's federal revenue.
In late 2021, the Sandesaras offered to repay ₹900 crore to settle their dues in a ₹16,000-crore bank fraud case. At that time, the Enforcement Directorate (ED) had already attached assets worth ₹14,521.80 crore belonging to the Sandesaras. According to an application filed in the Supreme Court then, the total amount due from the Sandesaras was a little over ₹1,500 crore, with ₹600 crore already repaid to the banks.
