Supreme Court Clears $570M Settlement in Sandesara Brothers’ $1.6B Bank Fraud Case
India’s top court allows fugitive billionaires to avoid criminal charges if they repay one-third of dues.
Decision sparks debate on justice, accountability, and future of economic offender settlements in India.
By Our Legal Correspondent
New Delhi: November 24, 2025:
In a landmark decision, the Supreme Court of India has agreed to drop criminal charges against fugitive billionaire brothers Nitin and Chetan Sandesara if they pay $570 million (₹4,750 crore), which is one-third of the total dues in their $1.6 billion (₹13,300 crore) bank fraud case. The ruling, delivered on November 24, 2025, has stirred intense debate across India’s financial and legal circles.
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The Sandesara brothers, once prominent industrialists with businesses spanning pharmaceuticals, energy, and oil exploration, fled India in 2017 using Albanian passports after being accused of defaulting on massive loans from Indian banks. They were declared fugitive economic offenders under the 2018 law that allows freezing of assets.
Background of the Case
- Accused: Nitin and Chetan Sandesara, promoters of Sterling Biotech and related companies.
- Allegations: Defaulting on loans worth $1.6 billion from Indian banks.
- Flight: Left India in 2017, reportedly residing in Nigeria and Albania.
- Legal Status: Declared fugitive economic offenders under Indian law.
- Settlement Offer: $570 million (one-third of dues) to quash all criminal proceedings.
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The brothers’ lawyer, Mukul Rohatgi, argued before the Supreme Court that his clients were willing to pay the settlement “to get rid of all proceedings” while continuing to deny wrongdoing.
Supreme Court’s Decision
- Criminal charges will be dropped if the brothers pay $570 million by December 17, 2025.
- The settlement is conditional and failure to pay will revive proceedings.
- The decision is intended to recover dues quickly and reduce prolonged litigation.
This ruling is seen as a rare turning point in India’s handling of large-scale financial fraud cases.
Implications of the Ruling
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- For the Sandesara brothers: They can avoid criminal prosecution and regain access to frozen assets if they comply.
- For Indian banks: A partial recovery of dues, though significantly less than the total owed.
- For other fugitives: The ruling may encourage similar settlement offers from individuals like Vijay Mallya and Nirav Modi.
- For the legal system: Raises questions about whether financial settlements undermine accountability for economic crimes.
Public and Expert Reactions
- Supporters argue that recovering even one-third of the dues is better than endless litigation with little chance of extradition.
- Critics warn that allowing fugitives to “buy their freedom” sets a dangerous precedent, weakening deterrence against financial fraud.
- Legal experts note that the ruling could reshape India’s approach to fugitive offenders, balancing recovery with justice.
The Sandesara Empire
- Sterling Biotech: A major pharmaceutical company.
- Energy ventures: Investments in oil exploration in Nigeria.
- Global reach: Operations across India, Africa, and Europe.
Their sudden fall from grace in 2017 shocked the corporate world, as they joined the list of high-profile fugitives accused of defrauding Indian banks.
Future Outlook
The settlement deadline of December 17, 2025, will be closely watched. If the brothers pay the agreed amount, it could pave the way for similar resolutions in other cases. However, if they fail, the Supreme Court has made it clear that criminal proceedings will resume.
This case highlights the tension between financial recovery and legal accountability. While banks may welcome partial repayment, critics argue that justice must not be compromised.
Conclusion
The Supreme Court’s decision to allow the Sandesara brothers to settle their $1.6 billion fraud case by paying $570 million is a watershed moment in India’s fight against economic crime. It offers a pragmatic solution to recover dues but raises serious questions about fairness and deterrence.
As India grapples with rising cases of financial fraud, this ruling could set the tone for future settlements, reshaping the balance between justice, recovery, and accountability.
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