Rs 9,800 crore settlement marks a rare full recovery in large NPA case
April 30, 2026
Sandesara case sets benchmark for large-value resolutions
At a time when lenders typically face steep haircuts in resolving large non-performing assets (NPAs), the settlement stands out for exceeding the ₹5,383 crore cited in the original complaint. The resolution ranks among the more substantial recoveries in India’s banking system.
In April 2026, the Supreme Court approved a full and final settlement, noting that all financial obligations had been met and no substantive issues remained pending.
Break from typical recovery trends
Over the past decade, India’s banking sector has struggled with large NPAs, often recovering only a fraction of dues. Against this backdrop, the Sandesara case represents a departure.
Of the total ₹9,800 crore, ₹3,507 crore was paid directly to a consortium of lender banks, ₹1,192 crore was realised through asset liquidation, and ₹5,111 crore was deposited as part of court-monitored proceedings. The combined inflows ensured full repayment, exceeding the initial claim amount.
Structured execution aids closure
The settlement followed a phased approach rather than a one-time payout. Payments were executed through a combination of direct repayments, liquidation proceeds and deposits recorded before the apex court. By the final stage, only a marginal balance remained, which was subsequently cleared.
This structured mechanism helped reduce uncertainty and ensured steady progress towards closure.
Legal closure across agencies
Following completion of payments, the Supreme Court ordered closure of all related proceedings, effectively ending investigations by agencies including the Central Bureau of Investigation, the Enforcement Directorate and the Serious Fraud Investigation Office.
The court observed that with obligations fulfilled, continuation of proceedings would serve no further purpose. It also directed the Securities and Exchange Board of India to complete residual formalities.
A reference point for future resolutions
The outcome comes amid ongoing efforts to strengthen India’s insolvency framework under mechanisms such as the Insolvency and Bankruptcy Code. While these reforms have improved timelines and transparency, full recoveries at scale remain rare.
The case underscores the potential of structured settlements backed by judicial oversight to deliver comprehensive recoveries. For lenders, it signals the possibility of maximising value, while for the broader financial system, it offers a rare instance of closure without compromise.
In contrast to typical large-value resolutions, the case concludes with all dues cleared, proceedings closed, and a definitive legal end—marking a distinct outcome in India’s recent corporate resolution landscape.
In April 2026, the Supreme Court approved a full and final settlement, noting that all financial obligations had been met and no substantive issues remained pending.
Break from typical recovery trends
Over the past decade, India’s banking sector has struggled with large NPAs, often recovering only a fraction of dues. Against this backdrop, the Sandesara case represents a departure.
Of the total ₹9,800 crore, ₹3,507 crore was paid directly to a consortium of lender banks, ₹1,192 crore was realised through asset liquidation, and ₹5,111 crore was deposited as part of court-monitored proceedings. The combined inflows ensured full repayment, exceeding the initial claim amount.
Structured execution aids closure
The settlement followed a phased approach rather than a one-time payout. Payments were executed through a combination of direct repayments, liquidation proceeds and deposits recorded before the apex court. By the final stage, only a marginal balance remained, which was subsequently cleared.
This structured mechanism helped reduce uncertainty and ensured steady progress towards closure.
Legal closure across agencies
Following completion of payments, the Supreme Court ordered closure of all related proceedings, effectively ending investigations by agencies including the Central Bureau of Investigation, the Enforcement Directorate and the Serious Fraud Investigation Office.
The court observed that with obligations fulfilled, continuation of proceedings would serve no further purpose. It also directed the Securities and Exchange Board of India to complete residual formalities.
A reference point for future resolutions
The outcome comes amid ongoing efforts to strengthen India’s insolvency framework under mechanisms such as the Insolvency and Bankruptcy Code. While these reforms have improved timelines and transparency, full recoveries at scale remain rare.
The case underscores the potential of structured settlements backed by judicial oversight to deliver comprehensive recoveries. For lenders, it signals the possibility of maximising value, while for the broader financial system, it offers a rare instance of closure without compromise.
In contrast to typical large-value resolutions, the case concludes with all dues cleared, proceedings closed, and a definitive legal end—marking a distinct outcome in India’s recent corporate resolution landscape.