In a landmark ruling that brings finality to a protracted legal and financial battle, the Supreme Court of India has officially closed the high-profile Sandesara matter. The apex court declared the dispute settled after confirming full compliance with its previous orders regarding the deposit of funds and the settlement with lender banks.
Massive Deposit and Court Verification
The petitioners, represented by senior advocate Mukul Rohatgi along with advocate Hemant Shah, informed a Bench comprising Justices J.K. Maheshwari and Vijay Bishnoi that they had fully complied with the court's November 19 order. They deposited a colossal sum of Rs 51,11,43,36,390.40 with the court registry. The legal team stated that this amount included an extra deposit made as a measure of abundant caution.
The Bench noted that a report from the court's own office, dated December 16, had verified the receipt of this enormous deposit. Furthermore, the Additional Solicitor General, representing the government, did not raise any dispute regarding the compliance. With this confirmation on record, the court proceeded to issue final directives.
Disbursement and Quashing of All Proceedings
The Supreme Court directed the Registrar (Judicial Administration) to disburse Rs 5,100 crore to the consortium of lender banks. This payment is to be made on a proportionate basis after due verification and transfer to the respective bank accounts.
In a decisive move, and with the consent of all involved parties, the court ordered a complete closure of all criminal and enforcement actions against the petitioners. The Bench directed that the following proceedings shall stand quashed:
- All investigations and cases stemming from the FIR registered by the Central Bureau of Investigation (CBI).
- Cases and attachments initiated by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).
- Proceedings under the Fugitive Economic Offenders Act.
- Inquiries by the Serious Fraud Investigation Office (SFIO).
- Matters related to black money and income tax laws.
The court emphasized that a "quietus" had been reached in the matter. It instructed all investigating agencies to formally communicate the closure of proceedings at every level, including to authorities at airports, through the Ministry of External Affairs.
Excess Funds for Legal Aid and Conclusion
The Bench also addressed the fate of the excess amount deposited beyond the Rs 5,100 crore earmarked for the banks. It accepted the submission that this surplus money, currently lying with the Bank of Maharashtra's Supreme Court branch along with any accrued interest, be transferred to the Supreme Court Legal Services Committee.
The court stated that these funds should be utilized for benevolent purposes at the discretion of the Committee, thereby directing a portion of the settlement toward public legal aid.
The litigation originated from multiple writ petitions filed by the Sandesara brothers, seeking the quashing of FIRs, ECIRs, prosecution complaints, attachments, and coercive actions under various statutes including the PMLA, the Fugitive Economic Offenders Act, the Companies Act, and the Black Money Act. According to their legal team, the original FIR pertained to alleged dues of about Rs 5,383 crore, whereas the total recoveries effected have reached approximately Rs 9,800 crore—nearly double the amount cited initially.
Based on the affidavit filed by the petitioners and the confirmed compliance, the Supreme Court disposed of the miscellaneous application, formally closing all proceedings in full satisfaction of its orders.
