New Delhi: The Supreme Court on Monday questioned the capital markets regulator for not closing proceedings against former directors of Sterling Biotech (SBL), Nitin and Chetan Sandesara, despite its November directions to quash all pending criminal cases after duo paid ₹5,100 crore as part of a mutually agreed one-time settlement.
The top court told the Securities and Exchange Board of India (Sebi) that once the court quashed all cases and payments made by the SBL directors, all proceedings were expected to end.
The bench, comprising Justices JK Maheshwari and Atul S Chandurkar, asked why Sebi was “coming in the way” now despite the court’s quashing orders passed November 19.
The Sebi probe relates to allegations the promoters secured loans from foreign banks and routed funds into their company as purported investments, which investigators suspected could mislead investors.
The Sandesara brothers‘ counsel told the court that Sebi had refused to close its probe despite compliance with the apex court order of one-time settlement.
On November 19, the top court had agreed to quash all criminal proceedings against the billionaire Sandesara brothers, subject to them depositing an additional ₹5,100 crore, one-third of the dues they owed in a bank fraud case.
The court also heard an application of local lenders, led by State Bank of India, seeking directions for disbursal of their respective claim amounts deposited with the court’s registry by the Sandesara brothers.
Share in Payments
The lenders also submitted a chart showing dues of the secured lender banks and their respective share to be distributed.
The court, which said the money deposited be transferred to the banks involved, listed the case for further hearing next Monday.
