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Informist, Monday, Mar. 16, 2026

 

NEW DELHI – The Supreme Court Monday questioned the Securities and Exchange Board of India for coming in the way of closing the proceedings against former directors of Sterling Biotech Ltd. Nitin Sandesara and Chetan Sandesara even after the court ordered quashing of all cases against them. Once the court has quashed all the cases and the payments made by the Sandesara brothers, all the proceedings were required to go, said the apex court. The counsel for the former directors said that SEBI had refused to close its probe even after their clients complied with the apex court's November order requiring them to pay INR 51 billion.

 

The top court was also hearing an application by State Bank of India and other secured lenders of Sterling Biotech and its group companies seeking directions for disbursal of their respective claim amounts, which stood deposited with the court's registry by the brothers. Noting that the money deposited should be transferred to the banks involved, the top court listed the case for Mar. 23.

 

Last year, the Supreme Court had agreed to drop criminal proceedings against the brothers, subject to them depositing INR 51 billion, one-third of the dues they owed in a bank fraud case. The deposited amount shall be disbursed to the respective lender banks on proportionate basis in reference to the amount due towards them, said the apex court.

 

The apex court had noted that the brothers intended to end the litigation with respect to the Central Bureau of Investigation, Enforcement Directorate, attachments under Prevention of Money Laundering Act, Fugitive Act, Serious Fraud Investigation Office, pertaining to black money and income tax, and have agreed to deposit the amount as demanded, honouring the proposal made by Solicitor General of India Tushar Mehta, on behalf of the government. The petitioners have agreed to deposit the given amount by way of full and final payment of the lender banks and to quash and close all proceedings against them, the court noted.

 

The Central Bureau of Investigation had registered a case against Sterling Biotech and its directors for cheating public sector banks. The probe agency said that Sterling Biotech took a loan from a consortium of banks led by Andhra Bank, defaulted on its repayment, and it subsequently turned into non-performing assets. The CBI alleged that the company diverted the loan amounts to the entities abroad through its group companies by adopting a circuitous route. Thereafter, all other agencies like the Enforcement Directorate and Serious Fraud Investigation Office registered cases against the company and directors.

 

In 2017, the brothers left India and obtained Albanian passports. Thereafter, the Indian authorities designated them as "fugitive economic offenders". A fugitive economic offender is a person against whom an arrest warrant has been issued and who has left India to avoid criminal prosecution or one who refuses to return to the country to face criminal prosecution. Kingfisher Airlines founder Vijay Mallya and diamond trader Nirav Modi are other individuals declared "fugitive economic offenders".  

 

Monday, shares of State Bank of India ended 1.9% higher at INR 1,066.70 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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