India’s Supreme Court has paved the way for billionaire brothers Nitin and Chetan Sandesara to settle one of the country’s largest alleged bank fraud cases by paying roughly $570 million — about a third of the $1.6 billion that authorities say they owe.
The ruling could bring an end to years of criminal proceedings spanning multiple jurisdictions and may set a precedent for other economic offenders seeking similar settlements, legal experts say. “This mirrors approaches in other countries where fines serve as alternatives to lengthy trials,” noted Debopriyo Moulik, a Supreme Court lawyer, in comments to Reuters.
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For the Sandesaras, the decision comes as they have built one of Nigeria’s largest independent oil businesses, far from Indian courts that have pursued them since 2017. Their success in Africa has frustrated Indian authorities and highlighted how commercial and geopolitical factors have shielded them from prosecution at home.
From India to Africa: Building an Oil Empire
Once minor license holders, the Sandesaras transformed their Nigerian operations into a vertically integrated oil empire, now producing about 50,000 barrels of crude daily through Sterling Oil Exploration & Production Co. and Sterling Global Oil Resources Ltd. Operating under contracts with the Nigerian National Petroleum Company, their companies are among the country’s top exporters.
Their African ascent began in the mid-2010s, as they shifted focus from India to Nigeria. The brothers moved operations to Lagos, recruited the former head of Nigeria’s petroleum regulator, and secured major government contracts, solidifying their influence in the nation’s energy sector. By 2019, taxes and royalties from Sandesara-linked entities reportedly accounted for 2% of Nigeria’s national revenue.
The group has also circumvented the perennial sabotage of Nigeria’s pipelines by shipping crude via barges to floating offshore storage vessels, ensuring consistent exports while competitors struggled with theft and militant attacks. Recently, Nigerian officials highlighted the brothers’ role in new oil discoveries in the country’s northeast, further cementing their strategic importance.
Allegations of Fraud in India
In India, the Sandesaras remain accused of orchestrating a massive financial fraud. Authorities claim the Sterling Group collapsed after allegedly using fake documents, inflated valuations, and complex shell structures to siphon funds overseas. The Central Bureau of Investigation (CBI) says the group owes over 140 billion rupees ($1.7 billion) to state-owned lenders, including State Bank of India, Union Bank of India, and Bank of Baroda.
A 2019 charge sheet alleges that loans meant for domestic ventures were instead funneled into offshore operations, including the Nigerian oil business. Indian banks later secured UK High Court rulings ordering the Sandesara-linked companies to repay nearly $60 million after defaults.
Attempts to extradite the brothers from Nigeria failed in 2018, as Nigerian authorities cited the political nature of India’s allegations. The brothers subsequently applied for Nigerian citizenship, remaining largely untouchable by Indian legal authorities.
A Complex Cross-Border Saga
While India sees the Sandesaras as fugitives, Nigeria regards them as key contributors to its energy sector. The Supreme Court settlement could finally resolve one of India’s most high-profile economic fraud cases, but it also underscores the complexities of international law, cross-border business, and the interplay of politics and commerce.
