MUMBAI: In a major setback to banks, the NCLT Friday sent Sterling Biotech for liquidation, rejecting the lenders' led by Andhra Bank, plea to withdraw the insolvency process and allow a one-time settlement with the absconding promoters, the Sandesara brothers. Further, the order stated that the amount deposited by the absconding promoters for the one-time settlement shall not be released to the applicant. The lenders, led by Andhra Bank, had sought the tribunal's approval after accepting the one-time settlement from the Sandesara brothers, the fugitive promoters of Sterling Biotech. The banks had approved a one-time settlement offer from the Sandesaras of around ₹3,945 crore out of the ₹7,500 crore they owe to the lenders. While the flagship Sterling Biotech owes over ₹7,500 crore, sister concern Sterling SEZ owes over ₹8,100 crore.

Source: Mint May 10, 2019 15:33 UTC