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In a significant development that underscores closure over prolonged litigation, the Supreme Court has brought the Sterling Biotech matter involving Nitin J. Sandesara and his group to a conclusive end, recording a total recovery of approximately Rs 9,800 crore and directing that all proceedings be finally settled.
The case, which originated from a CBI FIR alleging dues of Rs 5,383 crore, witnessed substantial recoveries over time. The Court noted that Rs 3,507 crore had already been repaid to lending banks, while Rs 1,192 crore was realised through liquidation of assets. In addition, a further deposit of Rs 5,111.43 crore was recorded, significantly contributing to the overall settlement figure. Taking into account the cumulative recoveries, the Bench observed that secured lenders had been fully compensated. On this basis, the Court held that no useful purpose would be served by continuing the litigation and directed that the matter be brought to a close through a full and final settlement. Consequently, all related proceedings, including those initiated by the Enforcement Directorate, the Serious Fraud Investigation Office, and the CBI, were ordered to be quashed. During hearings earlier this month, the Bench of Justices JK Maheshwari and Vijay Bishnoi also considered the role of SEBI. While granting a limited extension for filing its response, the Court made it clear that the matter required expeditious closure, particularly in light of the substantial recovery already achieved. Senior Advocate Mukul Rohatgi appeared for the petitioners and was assisted by Hemant Shah during the proceedings. The proceedings reached their final stage after the Court was informed that a balance amount of 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. Recording that all dues had been satisfied and no substantive issues remained pending, the Supreme Court declared that the case had attained finality. The order marks the end of one of the high-value financial disputes, with the Court emphasising that the recovery ensured full satisfaction of lenders' claims and justified a complete closure of proceedings. (ANI)
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