**Supreme Court Drops Charges Against Sandesara Brothers in Fraud Case**
The Supreme Court has decided to dismiss all criminal charges against fugitive businessmen Nitin and Chetan Sandesara, the founders of Sterling Biotech Ltd and Sterling SEZ & Infrastructure Ltd, following a ₹5,100-crore settlement related to a bank fraud case. The billionaire siblings, who transformed a modest tea-trading venture into a diversified conglomerate, fled India in 2017 after being accused of defrauding Indian banks of over $1.7 billion. In 2018, they were added to a list of 14 fugitive economic offenders, which includes notable figures like Vijay Mallya, Nirav Modi, and Mehul Choksi.
On November 19, a bench comprising Justices J.K. Maheshwari and Vijay Bishnoi approved the settlement after Solicitor General Tushar Mehta, representing the Union government and investigative agencies, confirmed that the banks had agreed to accept the settlement amount as full compensation for all liabilities. The court’s 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.”
This settlement entails the quashing of all cases against the Sandesara brothers filed by various agencies, including the Central Bureau of Investigation (CBI), Directorate of Enforcement, Serious Fraud Investigation Office, and the income tax department, as well as proceedings under the Prevention of Money Laundering Act, Black Money Act, and the Fugitive Economic Offenders Act. The stipulated amount must be deposited with the Supreme Court registry by December 17, 2025, where it will be placed in a short-term interest-bearing fixed deposit and disbursed to banks after verifying their claims.
The bench clarified that this relief was granted due to the unique circumstances of the case and should not set a precedent. However, legal experts suggest that this settlement could pave the way for similar arrangements in large financial fraud cases, potentially influencing high-profile fugitives like Vijay Mallya and Nirav Modi to pursue similar settlements. Tushar Agarwal, founder and managing partner of C.L.A.P. Juris, noted that prior to the Sandesara ruling, there had been no instances of financial settlements being accepted in cases involving such significant public funds. While settlements are sometimes reached in private commercial disputes, courts have typically been reluctant to endorse them in cases of this nature.
In conclusion, the Supreme Court’s decision to drop charges against the Sandesara brothers marks a significant development in the realm of financial fraud cases in India, raising questions about the implications for future cases involving economic offenders.
**FAQ**
**Q: What was the outcome of the Supreme Court’s decision regarding the Sandesara brothers?**
A: The Supreme Court dismissed all criminal charges against Nitin and Chetan Sandesara after they agreed to a ₹5,100-crore settlement in a bank fraud case.
