Sandesara Matter: Supreme Court closes case after Rs 5,100 crore deposit, orders quashing of all probes

NEW DELHI: Bringing a long-running financial and criminal dispute to an end, the Supreme Court of India has disposed of the Sandesara matter after recording complete compliance with its earlier directions on deposit of funds and settlement with lender banks.

The petitioners informed the Court that they had complied with the November 19 order by depositing a total sum of Rs 51,11,43,36,390.40, which also included an additional amount deposited as a measure of abundant caution.

Senior advocate Mukul Rohatgi, appearing for the petitioners along with advocate Hemant Shah, confirmed the compliance during the hearing.

The Bench comprising Justices J.K. Maheshwari and Vijay Bishnoi noted that the Court's office report dated December 16 had verified the deposit and that the Additional Solicitor General had not disputed the same. In view of this, the Court directed the Registrar (Judicial Administration) to disburse Rs 5,100 crore to the consortium of lender banks on a proportionate basis, following due verification and transfer to their respective accounts.

According to the legal team representing the Sandesara brothers, the original FIR pertained to alleged dues of about Rs 5,383 crore, whereas recoveries effected so far have touched approximately Rs 9,800 crore, nearly double the amount cited in the FIR

With the consent of all parties, the Supreme Court also ordered a complete closure of criminal and enforcement action against the petitioners. It directed that all investigations and proceedings arising from the FIR registered by the Central Bureau of Investigation, along with cases and attachments initiated by the Enforcement Directorate under the PMLA, proceedings under the Fugitive Economic Offenders Act, SFIO inquiries, and matters relating to black money and income tax laws, shall stand quashed.

Clarifying the scope of the closure, the Court said that a "quietus" had been reached in the matter and instructed all investigating agencies to formally communicate the closure of proceedings at every level, including to authorities at airports, through the Ministry of External Affairs.

The Bench further accepted the submission that the excess amount deposited in excess of Rs 5,100 crore, lying with the Bank of Maharashtra's Supreme Court branch, along with accrued interest, be transferred to the Supreme Court Legal Services Committee. The funds are to be utilised for benevolent purposes at the Committee's discretion.

In light of the affidavit filed by the petitioners and confirmation of compliance with its directions, the Supreme Court formally closed the proceedings by disposing of the miscellaneous application in full satisfaction of its earlier orders.

The litigation originated in multiple writ petitions filed by the Sandesara brothers seeking the quashing of FIRs, ECIRs, prosecution complaints, attachments, and coercive proceedings under several statutes, including the PMLA, the Fugitive Economic Offenders Act, the Companies Act, and the Black Money Act.

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