Supreme Court Approves $570 Million Settlement for Fugitive Billionaire Sandesara Brothers in Major Bank Fraud Case

The Supreme Court has accepted a settlement that could establish precedent for economic offenders seeking similar arrangements.

New Delhi:

India's Supreme Court has consented to dismiss criminal charges against billionaire siblings Nitin and Chetan Sandesara contingent upon their payment of approximately $570 million, representing one-third of their alleged $1.6-billion bank fraud liabilities. This decision may create a pathway for other economic offenders to pursue comparable settlements.

The brothers, whose business empire encompassed pharmaceuticals and energy sectors, departed India in 2017 using Albanian passports after being accused of defaulting on domestic bank loans, according to court documents. They have consistently maintained their innocence regarding the allegations.

In the Supreme Court order published Friday on the court's official website, the brothers' legal representative, Mukul Rohatgi, confirmed their willingness to remit $570 million as settlement, with a deadline established for December 17.

The court order noted that Rohatgi indicated his clients sought to "get rid of all proceedings" through this settlement and requested all legal actions be terminated.

Reuters inquiries to Rohatgi received no immediate response.

The Sandesara brothers are among 14 individuals designated as fugitive economic offenders under legislation enacted in 2018 that permits authorities to freeze assets of those so classified.

This category also includes Kingfisher Airlines founder Vijay Mallya and diamond tycoon Nirav Modi, both of whom deny bank fraud accusations against them.

The Sandesaras own Sterling Oil Exploration and Energy Production in Nigeria, which reportedly contributes 2.5% of that nation's federal revenue according to the company's website.

India's federal investigative agency had alleged that the brothers, known for hosting extravagant celebrations attended by Bollywood celebrities, defrauded banks of approximately $1.6 billion, though they rejected these claims.

This judicial decision could establish precedent for economic offenders to negotiate similar settlements, potentially leaving financial institutions unable to recover full amounts owed, according to Debopriyo Moulik, an independent Supreme Court lawyer.

"This approach closely resembles systems in foreign jurisdictions where financial penalties serve as alternatives to criminal trials," Moulik observed.