SC offers Sandesara Brothers relief if $570 million settlement is paid by December 17
New Delhi: The Supreme Court has cleared the way for a landmark resolution in one of the country’s largest financial crime cases by agreeing to drop criminal charges against billionaire industrialists Nitin and Chetan Sandesara if they repay a portion of what banks say they are owed. The decision, made public on Friday, allows the brothers to avoid prosecution in a $1.6 billion bank fraud case on the condition that they pay about $570 million by December 17, a settlement figure representing roughly one third of the outstanding dues.
The order stems from long-running allegations that the Sandesara brothers defaulted on loans from multiple Indian lenders before leaving the country in 2017. According to court documents, their counsel Mukul Rohatgi informed the bench that his clients were prepared to settle the case financially “to get rid of all proceedings,” a position that the order acknowledges by recording their intent to repay and close all pending actions. The court noted that once the settlement is completed within the deadline, it may quash all criminal proceedings linked to the case.
The brothers, who built a diversified business spanning pharmaceuticals, energy and related sectors, left India seven years ago and travelled on Albanian passports. They have continually denied the allegations and have fought related cases in different jurisdictions. Their departure placed them on a list of 14 individuals declared fugitive economic offenders under a 2018 law designed to target large-scale financial frauds. The designation permits authorities to pursue legal charges and seize assets even if the accused are abroad. Others named under the same statute include former Kingfisher Airlines head Vijay Mallya and diamond trader Nirav Modi, both of whom deny accusations of bank fraud. The inclusion of high-profile individuals on this list has kept the issue of recovery from major loan defaulters in public and judicial focus.
Despite facing legal action in India, the Sandesara family has continued to operate overseas businesses. Sterling Oil Exploration and Energy Production Company in Nigeria, controlled by the family, states on its website that it contributes approximately 2.5 per cent of Nigeria’s federal revenue. This international presence has ensured that their financial dealings remain under scrutiny while litigation progresses in India.
The ruling has drawn attention in legal circles because it may alter how large financial crime cases are resolved. Supreme Court lawyer Debopriyo Moulik said in a Reuters report that similar approaches exist in other jurisdictions where fines serve as an alternative to full trials. However, the arrangement also raises concerns that Indian lenders could recover only a fraction of their claims in complex and lengthy fraud cases.
Observers say the outcome could influence strategies adopted by other economic offenders and shape how banks, enforcement agencies and courts respond to future settlement offers. With a firm December 17 deadline now established, the next steps in the case will be closely monitored for signals about changes in India’s financial accountability landscape.
