In a landmark decision, the Supreme Court of India has agreed to drop all criminal proceedings against fugitive businessmen Nitin and Chetan Sandesara in exchange for a massive ₹5,100 crore settlement in one of the country's largest bank fraud cases.
The Historic Settlement Details
A bench comprising Justices J.K. Maheshwari and Vijay Bishnoi approved the unprecedented settlement on November 19, 2025, following submissions by Solicitor General Tushar Mehta representing the Union government and all investigating agencies. The court order confirmed that lenders had agreed to accept the amount as complete settlement of all liabilities.
The Sandesara brothers, promoters of Sterling Biotech Ltd and Sterling SEZ & Infrastructure Ltd, had been accused of defrauding Indian banks of more than $1.7 billion before fleeing the country in 2017. They were subsequently included in India's list of 14 fugitive economic offenders in 2018, alongside high-profile names like Vijay Mallya, Nirav Modi, and Mehul Choksi.
Legal Proceedings and Payment Timeline
The comprehensive settlement involves quashing all cases filed by multiple agencies including the Central Bureau of Investigation (CBI), Directorate of Enforcement, Serious Fraud Investigation Office, and income tax department. It also covers proceedings under the Prevention of Money Laundering Act, Black Money Act, and the Fugitive Economic Offenders Act.
According to the court's directive, the brothers must deposit the ₹5,100 crore amount with the Supreme Court registry on or before December 17, 2025. The registry will place these funds in short-term interest-bearing fixed deposits and release them proportionately to banks after verifying their dues.
The court specifically emphasized that this relief was granted due to the peculiar facts of this case and should not operate as a legal precedent for future cases.
Financial Breakdown and Recovery Process
Financial records presented to the court revealed intricate details of the settlement. The original alleged defalcation in the FIR stood at ₹5,383 crore, while the one-time settlement amount was negotiated at ₹6,761 crore. This comprehensive figure included liabilities of Indian companies such as Sterling Biotech, Sterling SEZ, PMT Machines, and foreign guarantor entities including Sterling Port Ltd and Sterling Oil Resources Ltd.
Of the total ₹6,761 crore settlement, the brothers had already paid ₹3,507.63 crore, leaving ₹3,253.37 crore outstanding. Additionally, banks had recovered ₹1,192 crore through insolvency proceedings involving the Indian companies, effectively reducing the remaining dues to ₹2,061.37 crore.
After extensive consultations with lenders and investigative agencies, Solicitor General Mehta informed the court that the final amount required to close all cases would be ₹5,100 crore.
Potential Legal Implications
Legal experts suggest this settlement could create a potential pathway for similar arrangements in other large financial fraud cases. According to Tushar Agarwal, founder and managing partner of law firm C.L.A.P. Juris, "Not guaranteed, but quite plausible that their legal teams will explore similar settlement routes, especially now."
He added that before the Sandesara ruling, India had not witnessed a case where financial settlement was accepted in fraud involving such substantial public money. While courts have traditionally refused such settlements in matters involving public funds or state-owned banks, this case marks a significant departure from established practice.
The success of similar settlements for other fugitives like Vijay Mallya and Nirav Modi would depend on multiple factors including negotiation leverage, available assets, and how aggressively banks and the state push for maximum recovery versus holding offenders accountable.
The Sandesara Brothers' Business Empire
The Sandesara brothers built their Sterling Group from a modest tea-trading business into a diversified conglomerate with interests spanning pharmaceuticals, infrastructure, healthcare, engineering, and oil and gas. At its peak, the group claimed a valuation of nearly $7 billion, with Sterling Biotech emerging as a major global producer of pharmaceutical-grade gelatin.
Their international expansion included aggressive moves into Nigeria nearly two decades ago through Sterling Oil Exploration and Production Co. Ltd and Sterling Global Oil Resources Ltd. Their operations eventually grew to become Nigeria's largest independent oil producer, contributing over 2% of the country's government revenue at one point according to Bloomberg reports.
However, their Indian operations collapsed under allegations of running an extensive bank fraud involving fabricated documents, shell entities, and diversion of loan funds. After ED attachments and multiple charge sheets, the brothers fled India in 2017 using Albanian passports.
Several Indian companies within the group subsequently collapsed into insolvency. Sterling Biotech was sold by the Indian bankruptcy court to US-based Perfect Day Inc. in 2019, while Sterling SEZ and other units went into liquidation. Indian banks also secured UK court orders directing Sandesara-linked entities to pay nearly $60 million.
