Supreme Court closes Sandesara fraud case after Rs 9,800 crore recovery
The Supreme Court has closed Nitin Sandesara's case as part of one of India's largest corporate resolutions, involving a recovery of Rs 9,800 crore.
In a major relief to the Sandesara brothers, the Supreme Court has closed the Rs 9,800 crore bank fraud case after a settlement accepted by all parties. Following this decision, the ongoing criminal proceedings against them have also been quashed.
In its order, the Court observed that continuing further proceedings against the Sandesara brothers would serve no significant purpose. The case, linked to Sterling Biotech promoters Nitin and Chetan Sandesara, was closed after they paid Rs 5,111.43 crore and reached a settlement for the remaining Rs 4,689 crore.
With this ruling, all criminal proceedings against them have been set aside.
The FIR registered against the Sandesara brothers and their company had cited an amount of Rs 5,383 crore.
The accused made a direct payment of Rs 3,507 crore. An additional Rs 1,192 crore was recovered through liquidation. Thereafter, a demand draft of Rs 45,70,522 was submitted on April 13, 2026. According to court records, a total of Rs 5,111.43 crore has been paid.
The Supreme Court noted that, after the settlement, further proceedings would not yield any substantial benefit and therefore agreed to close the criminal cases.
The Sandesara brothers were accused of taking large loans from Indian banks and fleeing the country in 2017, after which they were declared fugitives and economic offenders.
Banks indicated that they could proceed with recovery of their dues through this settlement. The agreement, which emerged as a significant decision toward the end of 2025, allowed for the closure of criminal cases upon payment of a substantial portion of the outstanding dues.
Rs 9,800 CRORE RECOVERY
In the Sterling Biotech matter, assets worth Rs 9,800 crore have been unlocked, making it one of the most comprehensive financial resolutions in India’s corporate history.
This landmark repayment by billionaire industrialist Nitin J Sandesara and his group is seen as a major boost to India’s banking system. The initial FIR registered by the Central Bureau of Investigation (CBI) had alleged a default of Rs 5,383 crore. However, over the years, a detailed review of the group’s financial compliance suggested efforts toward solvency and repayment.
During the proceedings, the Sandesara group directly transferred Rs 3,507 crore to the lending consortium. Additionally, Rs 1,192 crore was recovered through liquidation mechanisms.
Recently, the Supreme Court verified the final settlement deposit. In its compliance order dated December 17, 2025, the Court officially recorded the total amount at Rs 51,11,43,36,390 (approximately Rs 5,111.43 crore). The total recovery, when aggregated, comes close to this figure.
Banks had approached the Supreme Court seeking the release of Rs 5,100 crore. This amount forms part of the settlement involving Sterling Biotech Limited and its group companies.
The proceedings reached their final stage after the Court was informed that a balance amount of Rs 45.70 lakh would be deposited to complete all formalities. This payment was subsequently made on April 13, 2026, leaving no outstanding obligations under the settlement framework.