NEW DELHI — In a major legal development, the Supreme Court of India has quashed criminal proceedings in the Sandesara case after a comprehensive ₹5,100 crore settlement was reached. The Court questioned the necessity of further action by regulatory bodies, including SEBI, noting that the primary objective of recovering public money has been fulfilled.
Settlement and Legal Closure
The Court highlighted the substantial nature of the resolution reached between the government, lenders, and the Sandesara brothers:
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Exceeding Dues: While the calculated dues were approximately ₹1,700 crore, a consolidated settlement of ₹5,100 crore was agreed upon and fully paid in the interest of the public and the banking system.
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Intent to Resolve: The Bench observed that the full payment demonstrates a clear intent to return funds to the banking system, rendering the continuation of criminal proceedings unnecessary.
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Regulatory Question: The Court has asked how further investigations can proceed once a legal closure has been granted and the settlement honored.
Disbursal of Funds
The focus has now shifted to the distribution of the recovered amount among the affected financial institutions:
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Lender Consensus: A consortium of lenders, led by the State Bank of India (SBI), submitted a detailed chart to the Court outlining the respective shares of the deposited funds.
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Upcoming Decision: The Supreme Court is scheduled to rule on Monday, March 23, 2026, regarding an application for the immediate disbursal of these claim amounts from the Court’s registry.
