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A Delhi court has quashed all criminal proceedings against Sandesara brothers -Nitin and Chetan Sandesara - Gagan Dhawan and Ranjeet Malik in the Sterling Biotech matter. It is to be remembered that on November 25 last year, the Supreme Court agreed to quash all criminal proceedings against the Sandesaras if they paid a one-time settlement of Rs 5,111 crore.On December 25, the Sandesaras had informed the Supreme Court that they had paid over Rs 5,111 crore due to the banks.Significantly, the court also ordered the Enforcement Directorate to release all the seized/confiscated properties of the Sandesara brothers. The court further said all NBWs and LOCs should be withdrawn.In 2017, both the CBI and ED had filed separate cases against them.With
this order, the Sandesara brothers can now come to India.A Special Court (PMLA) yesterday passed orders giving effect to the Supreme Court’s directions that, in the event of the Sandesara brothers paying up the dues, the criminal proceedings against them can be quashed.Accordingly, no case or proceedings remain pending, and Mr Gagan Dhawan stands cleared of all charges and free from any legal proceedings.
THE ORDERThe PMLA court, Special Judge ASJ Shefali Barnala Tandon, wrote in the order:“In view of the aforesaid order of the Hon’ble Supreme Court of India, the aforesaid FIRs along with all consequential proceedings have been quashed. The said order has attained finality in view of compliance order in Miscellaneous Application No. 2623 of 2025 and is binding upon this Court. Accordingly, the present proceedings are hereby dropped.The Directorate of Enforcement is directed:(i) To release all seizure/freezing in ECIR/HIU/17/2017 to the respective individuals/entities;(ii) To withdraw all LOCs/NBWs/open-ended NBWs/Red Corner Notices and any/all extradition requests against any individuals/entities;(iii) To communicate to airports/Ministry of Home Affairs and Ministry of External Affairs regarding withdrawal of all LOCs/NBWs/open-ended NBWs/Red Corner Notices against any individuals/entities at the earliest; and(iv) To communicate and take necessary steps to delete the names of individuals from the list of fugitives;(v) To release and restore the attached properties forthwith to the lawful claimant(s)/persons entitled thereto in exercise of powers conferred under Section 8(8) of the Prevention of Money Laundering Act, 2002, after due verification and completion of necessary formalities, in accordance with law.The complaint and all consequential proceedings stand disposed of. The bail bonds of the accused persons stand cancelled and sureties discharged. The original documents, if any, of the surety(s) be released as per rules and endorsement be cancelled.At request, the original documents, if any, on record be released to the complainant/ED, as per rules.”What is the case all about?A Bench of Justices J K Maheshwari and Vijay Bishnoi of the Supreme Court had, in November, however said, “These directions, as issued, are in peculiar facts of this case; therefore, they shall not be treated as precedent.”The Sandesaras, promoters of the Sterling Biotech Group, had been declared Fugitive Economic Offenders in September 2020 by a Delhi court on a plea filed by the ED relating to a case wherein they have defrauded Indian banks to the tune of at least Rs 15,600 crore and fled to Nigeria.The Sterling Group is under investigation by the CBI, ED and the Serious Fraud Investigation Office (SFIO) for fraud and money laundering.The Supreme Court had said the prime purpose was the recovery of public funds and that continuation of the criminal proceedings would not serve any useful purpose.The Supreme Court bench had noted, “Since inception, this Court was of the view that if the petitioners are ready to deposit the amount as settled in OTS and public money comes back to lender banks, the continuation of the criminal proceedings would not serve any useful purpose. The tenor of the proceedings apparently indicates peculiarity, with intent to protect the public money and interest and to get deposited the defalcated amount.”The Supreme Court stated that the order was tailored to the peculiar circumstances present, focusing on public interest and maximising the recovery of defrauded funds.
