Sterling Biotech saga: A timeline of India’s major bank fraud case

The Sterling Biotech case, one of India’s most significant bank frauds, has neared its conclusion with the Supreme Court’s conditional quashing of criminal cases against the fugitive Sandesara brothers. The complex saga, intertwining a massive financial scam with a protracted insolvency process, spans nearly a decade. Here is a detailed timeline of key events.

The Unraveling: Exposure of the Fraud (Pre-2018)

• Circa 1990s-2017: Sterling Biotech Ltd., a listed pharmaceutical company promoted by Nitin Sandesara, Chetan Sandesara, and Dipesh Patel, operates multiple facilities. Investigations later allege that the promoters orchestrated a complex web of transactions through hundreds of shell companies to siphon off thousands of crores in bank loans.
• 2017: The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) initiate probes based on complaints from a consortium of banks, led by Andhra Bank. The alleged fraud figure is initially pegged at over ₹5,383 crore. The promoters leave India as investigations intensify.

The Insolvency Route: NCLT Takes Charge (2018-2019)

• June 11, 2018: The National Company Law Tribunal (NCLT), Mumbai, admits Andhra Bank’s petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), initiating the Corporate Insolvency Resolution Process (CIRP) against Sterling Biotech.
• May 8, 2019: After the Committee of Creditors (CoC) fails to approve a resolution plan, the NCLT orders the liquidation of Sterling Biotech. Ms. Mamta Binani is appointed as the Liquidator.

Liquidation and the Quest for a Buyer (2019-2022)

• October 21, 2021: The Liquidator issues a public notice and a Process Document inviting bids for the acquisition of Sterling Biotech as a whole on a “going concern” basis.
• April 4, 2022: After a competitive e-auction, Perfect Day Inc., a US-based company, emerges as the highest bidder with an offer of ₹638.00 Crores. The second-highest bid was ₹630 Crores from ACG Associated Capsules.
• November 11, 2022: In a landmark order, the NCLT approves the acquisition plan submitted by Perfect Day Inc. The tribunal grants critical reliefs, including the extinguishment of existing share capital and a “clean slate” for the new management, invoking the protections of Section 32A of the IBC. This order is the foundation for the company’s revival, separating it from the sins of its former promoters.

Corporate Rebirth Meets Regulatory Hurdles (2022-2025)

• March 3, 2023: The company’s shares are formally delisted from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as per the approved acquisition plan.
• 2023-2024: The new management, now operating the acquired entity, repeatedly approaches the Registrar of Companies (RoC) to formally convert “Sterling Biotech Limited” to “Sterling Biotech Private Limited.” The RoC blocks the conversion, citing Rule 41 of the Companies (Incorporation) Rules, 2014, which prohibits such a change if any prosecution is pending against the company.
• July 29, 2025: The NCLT intervenes again, allowing the company’s application and directing the RoC to process the conversion. The tribunal firmly reiterates that the pending prosecution and SFIO investigation against the old Sterling Biotech cannot be an obstacle, as the IBC’s Section 32A provides immunity to the company and its assets under the new, unconnected management. This decision clears the final corporate hurdle for the reborn entity.

The Final Act: Supreme Court’s Settlement Offer (2025)

• November 19, 2025: The Supreme Court of India delivers a surprising judgment. A bench led by Justice J.K. Maheshwari conditionally agrees to quash all criminal proceedings against the Sandesara brothers.
• The Condition: The court mandates that the Sandesaras must deposit ₹5,100 Crore as a “full and final” settlement to the lender banks.
• The Deadline: The amount must be deposited with the Supreme Court Registry on or before December 17, 2025. Only upon full payment will the order quashing the criminal cases become operative.
• The Math: The court noted the total OTS was ₹6,761 crore. After accounting for amounts already paid (₹3,507.63 crore) and recoveries from the IBC process (₹1,192 crore), the remaining unpaid dues were ₹2,061.37 crore. The ₹5,100 crore figure was agreed upon based on a sealed cover submission from the Solicitor General.

Also See: SC quashes criminal cases against Sandesara brothers; agrees to ₹5,100 crore settlement in Sterling Biotech fraud