New Delhi [India], January 30 : Directing the Enforcement Directorate (ED) to immediately undo all coercive actions, a Special Court under the Prevention of Money Laundering Act (PMLA) at Patiala House Courts has ordered the release of all seized and frozen assets, withdrawal of Look Out Circulars (LoCs), non-bailable warrants, Red Corner Notices and extradition requests, and deletion of names from the list of fugitives in the Sterling Biotech-Sandesara brothers matter.
The Special Judge (PMLA) further directed the ED to restore all attached properties forthwith to the lawful claimants under Section 8(8) of the Prevention of Money Laundering Act, 2002, after due verification and completion of necessary formalities.
The court also ordered that the ED communicate the withdrawal of all coercive measures to airports, the Ministry of Home Affairs and the Ministry of External Affairs at the earliest.
Recording these directions, the court held that the complaint and all consequential proceedings stood disposed of. It ordered cancellation of bail bonds, discharge of sureties, and release of original documents, if any, in accordance with rules.
The Special Court noted that the Supreme Court of India, by its order dated November 19, 2025, had already quashed the ECIR, the prosecution complaint, and the supplementary complaints, and all consequential proceedings arising therefrom.
The court observed that the Supreme Court's order had attained finality, particularly after a subsequent compliance order confirmed adherence to the apex court's directions, rendering the quashing binding on the PMLA court.
At the threshold, counsel for the accused submitted that in light of the Supreme Court's judgment, nothing survived for adjudication before the Special Court and only consequential directions were required to ensure full implementation of the apex court's ruling. Certified copies of the Supreme Court's order and the compliance order were placed on record.
The court also recorded that upon specific queries with respect to each prayer made by the accused, counsel appearing for the Directorate of Enforcement raised no objection and stated that the department was ready to comply with the Supreme Court's order "in letter and spirit". In these circumstances, the Special Judge concluded that continuation of the proceedings would be impermissible and that the present case was liable to be dropped.
During the course of the proceedings, the Sandesara brothers and connected accused and entities were represented by Advocate Hemant Shah, assisted by Akshay Rana, Saurabh Pal, Vishal Mann, Aishvarya, Saurabh Rajput, Sh. Ojas Kaushik and Ashutosh Kumar Tiwari.
The proceedings before the PMLA court arose out of investigations initiated by the ED in relation to the Sterling Biotech Group. The Supreme Court, while allowing writ petitions filed by the accused, had quashed not only the FIRs and ECIR but also proceedings relating to attachment, seizure, freezing of properties and even action under the Fugitive Economic Offenders Act, subject to compliance with conditions recorded by the apex court. With compliance having been confirmed, the Special PMLA Court held that no proceedings could legally survive.