Supreme Court's Landmark Decision: Sterling Biotech Fraud Case Quashed for ₹5100 Crore Settlement

The Supreme Court conditionally quashes all criminal proceedings against Sterling Biotech directors Nitin and Chetan Sandesaras. On payment of ₹5100 crore to settle public bank dues, all charges will be dismissed. The ruling emphasizes public money repayment and specifies no future precedence for similar cases.

In a significant ruling, the Supreme Court has agreed to quash all criminal proceedings against Sterling Biotech's former directors, Nitin and Chetan Sandesaras. The decision is contingent upon the Sandesaras paying ₹5100 crore to settle outstanding dues with the public banks that initiated fraud proceedings.

The bench, comprising Justices JK Maheshwari and Vijay Bishnoi, emphasized the importance of public money being returned to the lender banks. They noted that once the funds are deposited, the continuation of criminal proceedings would be unnecessary and unconstructive. The final deadline for the deposit is set for December 17, 2025.

Details of the court directive include depositing the amount with the Court's Registry, followed by verification and proportional disbursement to creditor banks. With this settlement, all associated litigations, including FIRs and one-time settlements, would be resolved, marking a full closure of the case.

The Sterling Biotech fraud investigation included serious charges by the CBI, ED, SFIO, and IT Department, but the court clarified this settlement as non-precedential. The conviction and all related matters now rest on the condition of the monetary deposit.

(With inputs from agencies.)