Supreme Court Orders SEBI to Resolve Case Against Sandesaras

Original: Supreme Court asks Sebi to close case against Sandesaras or face action

Business Standard•Apr 2, 20265 min

In a Nutshell

The Supreme Court of India has directed the Securities and Exchange Board of India (SEBI) to conclude its proceedings against Sterling Biotech Limited and its promoters, Chetan and Nitin Sandesara, unless they deposit ₹5,100 crore (approximately $615 million USD) as previously agreed. The court will review the matter again on April 10.

Key Points

01Supreme Court mandates SEBI to close proceedings against Sandesaras.
02Chetan and Nitin Sandesara must deposit ₹5,100 crore to quash all charges.
03SEBI is investigating allegations of misleading financial practices.
04A consortium of banks claims ₹19,283.77 crore is owed by the Sandesaras.
05Next hearing scheduled for April 10 to assess compliance and further actions.

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Full Summary

On Thursday, the Supreme Court of India instructed the Securities and Exchange Board of India (SEBI) to finalize its case against Sterling Biotech Limited (SBL) and its promoters, Chetan and Nitin Sandesara. The court emphasized that all proceedings would be quashed if the Sandesaras deposit ₹5,100 crore (approximately $615 million USD) as previously agreed. This decision follows the court's acceptance of a settlement proposal in November 2022, where the Sandesaras committed to this deposit as a resolution to various claims. SEBI's ongoing investigation involves allegations that the Sandesaras misled investors by securing loans from foreign banks and misrepresenting the company's financial status. The next hearing is set for April 10, where the court will review SEBI's compliance with its order. Meanwhile, a consortium of banks has claimed a total of ₹19,283.77 crore is owed to them, and they are seeking the distribution of the deposited amount based on their respective claims.

Key Figures

₹5,100 crore

Deposit required to quash proceedings against the Sandesaras

₹19,283.77 crore

Total claims by the consortium of banks against the Sandesaras

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Why It Matters

The resolution of this case could impact the financial recovery of banks and investors involved with Sterling Biotech Limited, potentially affecting loan repayments and investor confidence.

Who is affected

Banks, investors, and stakeholders in Sterling Biotech Limited.

What to know

Stakeholders should monitor the upcoming court hearing for updates on the proceedings and potential recovery of funds.

FAQ

The Supreme Court ordered SEBI to close proceedings against the Sandesaras if they deposit ₹5,100 crore, which was part of a settlement agreement.

The Sandesaras are accused of securing loans and misrepresenting the financial position of Sterling Biotech Limited, potentially misleading investors.

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