Key Takeaways
- Supreme Court approves ₹5,100 crore settlement to drop all criminal cases against Sandesara brothers
- Settlement covers CBI, ED, SFIO, income tax and money laundering cases
- Payment deadline set for December 17, 2025
- Legal experts say this could set precedent for other high-profile fugitive economic offenders
The Supreme Court has cleared fugitive businessmen Nitin and Chetan Sandesara of all criminal charges in a massive bank fraud case, accepting their ₹5,100 crore settlement offer. The landmark decision quashes all proceedings by central investigative agencies against the Sterling Group promoters.
The billionaire brothers, who fled India in 2017 after being accused of defrauding banks of over $1.7 billion, were among India’s 14 declared fugitive economic offenders alongside Vijay Mallya, Nirav Modi and Mehul Choksi.
Court Approval and Settlement Terms
A bench of Justices J.K. Maheshwari and Vijay Bishnoi approved the settlement on November 19 after Solicitor General Tushar Mehta informed the court that lenders had agreed to accept the amount as full settlement.
The court order stated: “In furtherance… the proposal made by the learned solicitor general has been accepted and the petitioners have agreed to deposit the amount specified in the proposal subject to closure of all the proceedings.”
The comprehensive settlement covers:
- All CBI cases
- Enforcement Directorate proceedings
- Serious Fraud Investigation Office cases
- Income tax department cases
- Prevention of Money Laundering Act cases
- Black Money Act cases
- Fugitive Economic Offenders Act proceedings
Payment Timeline and Financial Details
The ₹5,100 crore must be deposited with the Supreme Court registry by December 17, 2025. The court will place the funds in interest-bearing fixed deposits and distribute them proportionately to banks after verifying dues.
Financial breakdown reveals:
- Original alleged fraud: ₹5,383 crore
- One-time settlement amount: ₹6,761 crore
- Already paid: ₹3,507.63 crore
- Recovered through insolvency: ₹1,192 crore
- Final settlement amount: ₹5,100 crore
The brothers had informed the court in February 2024 about depositing $50 million (₹415 crore) with commitments for additional payments.
Legal Implications and Precedent Concerns
While the bench clarified this relief was granted due to “peculiar facts” and shouldn’t operate as precedent, legal experts believe it creates a potential pathway for similar settlements.
Tushar Agarwal, founder of law firm C.L.A.P. Juris, explained: “Not guaranteed, but quite plausible that their legal teams will explore similar settlement routes, especially now. Whether they succeed depends heavily on negotiation leverage—how much assets they can muster—how aggressive the banks and the state are in pushing for maximum recovery.”
He noted this marks the first instance where financial settlement was accepted in fraud involving such substantial public money, breaking from traditional court refusals in cases involving public funds and central agencies.
The Sandesara Brothers’ Journey
The brothers transformed a small tea-trading business into a diversified conglomerate spanning pharmaceuticals, infrastructure, healthcare, engineering, and oil and gas. At its peak, the Sterling Group claimed nearly $7 billion valuation, with Sterling Biotech becoming a major global gelatin producer.
Their aggressive Nigerian expansion through Sterling Oil Exploration made them that country’s largest independent oil producer, contributing over 2% to government revenue at one point.
However, Indian investigators uncovered massive bank fraud involving fabricated documents, shell entities and loan diversions. After Enforcement Directorate attachments and multiple charge sheets, the brothers fled India in 2017 using Albanian passports.
The collapse saw Sterling Biotech sold to US-based Perfect Day Inc. in 2019, while other group units went into liquidation. Indian banks also secured UK court orders for nearly $60 million from Sandesara-linked entities.
