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Friday, May 20, 2022

No SC relief for Sterling Biotech on one-time settlement to banks

A Bench of Justices R F Nariman and B R Gavai dismissed the application filed by SBL-owned Richmond Investments Ltd, seeking the relief.

By: Express News Service | New Delhi |
Updated: February 26, 2021 5:25:46 am
Orders release, issues notice: SC ‘appalled’ as cops arrest court-appointed IRP for JaypeeThe arrest of an Interim Resolution Professional appointed by the Supreme Court in a case concerning the debt-ridden Jaypee Infratech Limited (JIL) by the Uttar Pradesh Police had the court fuming and ordering his immediate release.

The Supreme Court has rejected a plea seeking extension of time till March 31 to complete the one-time settlement (OTS) of dues owed by Gujarat-based Sterling Biotech Limited (SBL) — which is facing a money laundering probe — to a consortium of banks.

A Bench of Justices R F Nariman and B R Gavai dismissed the application filed by SBL-owned Richmond Investments Ltd, seeking the relief.

Richmond, in its application, had sought the extra time to save SBL from impending liquidation saying that if liquidation happens, it “will affect the pharmaceutical industry as 60 per cent of capsules sold in the country are manufactured from gelatin produced by the company which will have devastating disruption during this pandemic”.

The plea contended that several thousand employees would lose their jobs if the liquidation goes through.

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In an additional affidavit, the company said that SBL promoters, Nitin Sandesara, Chetankumar Sandesara, Dipti Chetan Sandesara and Hiteshkumar Patel “are facing a frivolous prosecution including under PMLA (Prevention of Money Laundering Act) for alleged default in payment towards the loan accounts.”

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