$1.18b Sandesara resolution among India’s largest, seen as ‘win-win’ for banks and government

In one of the most constructive and expansive financial resolutions in Indian corporate history, the Sterling Biotech matter has culminated in a reported $1.18 billion value recovery.
The repayment, attributed to industrialist Nitin J. Sandesara and his group, is described as a significant development for the Indian banking system, with stakeholders characterising it as beneficial to both lender banks and the government.

According to India.com, the case originated from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), which referenced an alleged amount of $648 million.

Over the course of the proceedings, the Sandesara group transferred $422 million to a lending consortium, while an additional $144 million was realised through liquidation mechanisms.

In a compliance order dated December 17, 2025, the Supreme Court of India noted that “the amount deposited comes to $616 million

When aggregated, total recoveries are estimated at approximately $1.18 billion.

Following the settlement, the Supreme Court directed that the matter be brought to a close.

“The litigation shall be put to an end by way of full and final settlement as per consensus and this litigation shall be put to quietus,” the court stated.

The court also ordered the closure of related proceedings, including those involving the CBI, the Enforcement Directorate (ED), and the Serious Fraud Investigation Office (SFIO).

The court subsequently addressed outstanding regulatory processes to ensure full closure of the case.

At a hearing on April 2, 2026, a Supreme Court bench comprising Justices J.K. Maheshwari and Vijay Bishnoi directed the Securities and Exchange Board of India (SEBI) to expedite its final response.

While SEBI requested a 10-day extension, the court granted seven days, emphasising the need for a timely conclusion.

During proceedings on April 10, 2026, it was submitted that a balance of ₹45,70,522 would be paid via a demand draft to complete all remaining obligations.

The court noted that with the cumulative recovery already achieved, no further substantive steps remained pending.

On April 13, 2026, the payment was reportedly completed, marking the final compliance in line with the court’s directives.

The resolution represents one of the largest recoveries of its kind in India’s corporate history.

Stakeholders say the development strengthens the financial position of participating banks and underscores the role of structured settlements in resolving complex financial disputes.