Supreme Court Questions Further Action In Sandesara Case After Rs 5,100 Crore Settlement

The Supreme Court also heard lenders led by State Bank of India regarding the distribution of the deposited funds.

21 Mar 2026, 17:11 · www.ndtv.com

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The Supreme Court questioned further action after a Rs 5,100 crore settlement in the Sandesara case
The court noted the actual due was Rs 1,700 crore but accepted a higher settlement for public interest
Sandesara brothers fully paid the Rs 5,100 crore settlement, showing intent to resolve the case

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The Supreme Court has raised key questions over any further action in the Sandesara case after a Ra 5,100 crore settlement. The court noted that the calculated due in the case was around Rs 1,700 crore. However, in public interest, the government and lenders arrived at a higher consolidated settlement of Rs 5,100 crore.

The Sandesara brothers accepted and fully paid this amount. The court said this demonstrated a clear intent to resolve the matter and return substantial funds to the banking system.

Following the settlement, the Supreme Court ordered the quashing of criminal proceedings.

The court has now questioned how any further action, including by the Securities and Exchange Board of India (SEBI), can continue once the settlement has been honoured and legal closure granted.

It emphasised that the primary objective of safeguarding public money has already been achieved. The court also observed that continuation of criminal proceedings would not serve any useful purpose, given that public money is being returned to lender banks.

The Supreme Court also heard lenders led by State Bank of India regarding the distribution of the deposited funds and listed the matter for further hearing next week.

The court is scheduled to decide on Monday an application filed by local lenders, led by State Bank of India, seeking directions for the disbursal of their respective claim amounts deposited with the court's registry by the Sandesara brothers.

The lenders submitted a chart detailing the dues of the lender banks and their respective shares to be distributed.

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