Additional sessions judge Satish Kumar Arora issued the notices to the owners of the Gujarat-based pharmaceutical firm.
A Delhi court on Friday issued notice to Sterling Biotech promoters Sandesara brothers following a Directorate of Enforcement (ED) plea to declare them as “fugitive economic offenders” in connection with the Rs 8,100 crore bank fraud case.
Additional sessions judge Satish Kumar Arora issued the notices to the owners of the Gujarat-based pharmaceutical firm — Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel.
ED in its application under Fugitive Economic Offenders Act said that Sterling Biotech group obtained loan facilities of more than Rs 5,000 crore from banks and financial institutions, all had turned non-performing assets (NPA). As the investigation progressed, it came to the fore that Sterling group and its related group companies had availed of loan or credit facilities to the tune of Rs 8,100 crore which had been declared “fraud accounts” by the concerned banks.
“The banks got conducted forensic audits to ascertain the end use of the loans. As on date, forensic audit report from two banks — Andhra Bank and State Bank of India — have been received by ED which reveal the use of loan amount for non-mandated purposes, necessary disclosures not made, loan funds withdrawn as cash, payments made to non existent parties, non-justificatory payments to directors etc,” the ED plea filed by SPP Nitesh Rana said.
According to the plea, Sterling group controlled 249 companies in India, of which more than 200 companies were found to be “benami entities” used to siphon loan funds obtained from the banks and used it for money-laundering.