The Sandesara brothers, Nitin and Chetan, may end up paying more than what they originally owed to Indian banks in the Sterling Biotech fraud case. This comes after the Supreme Court of India agreed to drop all criminal proceedings against the fugitive brothers, promoters of Sterling Biotech Ltd, if they deposit ₹5,100 crore (approximately $612 million) with the court by December 17, 2025.
The case involves an alleged bank fraud of over ₹5,383 crore (approximately $646 million) linked to Sterling Biotech. The Sandesara brothers fled India in 2017 using Albanian passports after being accused of defaulting on loans from domestic banks. They have denied any wrongdoing.
A fresh calculation by the Enforcement Directorate (ED) indicates that the total recovery in the case could reach ₹10,000 crore (approximately $1.2 billion). The government has already recovered ₹4,700 crore (approximately $564 million) from the Sandesaras' assets since 2018, when the ED began its money laundering probe. These assets, worth over ₹14,500 crore (approximately $1.7 billion), are located both in India and abroad and include oil rigs, ships, and aircraft in Nigeria.
The Supreme Court's decision to drop criminal proceedings is contingent on the Sandesara brothers depositing ₹5,100 crore with the Supreme Court registry by December 17. The court has directed that the amount be deposited with the Supreme Court Registry and kept in a short-term, interest-bearing fixed deposit account with a nationalized bank until disbursement among the lender banks. The disbursement will be proportionate to the amount due to each bank.
The settlement involves quashing all cases filed against the brothers by various agencies, including the Central Bureau of Investigation (CBI), Directorate of Enforcement, Serious Fraud Investigation Office, and the Income Tax Department. Proceedings under the Prevention of Money Laundering Act, Black Money Act, and the Fugitive Economic Offenders Act will also be dropped.
The Supreme Court has clarified that the relief granted is specific to the unique circumstances of this case and should not be treated as a precedent.
The Sandesara brothers' business empire spans pharmaceuticals to energy. They control Sterling Oil Exploration and Energy Production Company in Nigeria. The Indian authorities accused the brothers of orchestrating a $1.6 billion bank fraud. According to the CBI, part of the Sandesara Group's growth was financed through a "well calculated economic fraud" that left the group owing more than 140 billion rupees ($1.71 billion) to public-sector lenders.
Some in the government believe that the Supreme Court's order might have implications for cases involving other fugitives, such as Nirav Modi and Vijay Mallya, who could seek similar relief. Legal experts say the ruling could set a precedent for other economic offenders seeking to settle criminal charges through partial payments.
