Supreme Court Urges SEBI to Close Sterling Biotech Case or Face Action
New Delhi, April 2 – The Supreme Court has directed the Securities and Exchange Board of India (SEBI) to either conclude its proceedings against Sterling Biotech Limited (SBL) and its promoters, Chetan and Nitin Sandesara, or face a detailed order from the bench.SEBI Order and Deposit Requirement
The court, comprising Justices J K Maheshwari and A S Chandurkar, reiterated that all proceedings, including those initiated by SEBI, must be quashed if the Sandesara brothers deposit Rs 5,100 crore in the apex court registry. This order, issued last November, was contingent on the full and final settlement of claims.Timeline of Events
The Sandesara brothers agreed to deposit the sum in December 2025, following which the court implemented its earlier order to quash related proceedings. Last month, a consortium of secured lenders, representing 20 out of 26 banks involved with SBL, approached the Supreme Court seeking disbursement of their claim amounts from the deposited funds.Lender Claims and Outstanding Debt
The consortium, comprised of 20 out of 26 secured creditors, submitted a consolidated computation of claims totaling Rs 19,283.77 crore across multiple group entities. The lenders utilized a methodology involving a fixed exchange rate of Rs 63 per US dollar (reflecting the average rate in 2015) and a uniform interest rate of 9 per cent per annum, resulting in the total admitted dues.| Bank Serial No. | Number of Banks | Claims Submitted |
|---|---|---|
| 1 to 20 | 20 | All Documents Submitted |
| 21 to 26 | 6 | Documents Pending |
SEBI Investigation
SEBI is currently investigating allegations that the Sandesara brothers obtained loans from foreign banks and routed funds into SBL as investments, misleading investors and distorting the company’s financial position.Court Orders Regarding Unclaimed Funds
The Supreme Court noted that the six banks with outstanding documents – Krung Thai Bank, Hua Nan Commercial Bank, Taiwan Co-operative Bank, The Shanghai Commercial and Savings Bank Limited, HDFC Bank, and Aviral Maritime Infra – would have their share of the deposited funds held in fixed deposits on an auto-renewal basis, to be distributed upon submission of formal claims and accrued interest.Further Hearing
The matter has been posted for further hearing on April 10. Solicitor General Tushar Mehta is deliberating with SEBI and will inform the court about the developments the day after the hearing.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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