Criminal Law – Quashing under Article 32 – Large-scale financial fraud allegations – OTS with banks – Petitioners voluntarily depositing entire settlement amount – State proposing full and final figure of ₹5100 crores – Consensus achieved – Held: In extraordinary and peculiar facts, upon full deposit, all FIRs, ECIRs, PMLA attachments, SFIO prosecutions, Black Money Act cases, and Fugitive Economic Offenders proceedings to be quashed – Directions issued for disbursement to banks – Order not to be treated as precedent [Paras 10–12].
Criminal Law – Article 32 – Quashing of FIRs – Extraordinary Jurisdiction – Held: Court may exercise plenary powers in exceptional cases to secure larger public interest where petitioners have agreed to deposit entire defalcated amount and settlement is reached with banks and agencies – Continuation of criminal proceedings would serve no useful purpose after full restitution of public money [Paras 10–12].
Financial Fraud – OTS and Insolvency Proceedings – Computation of Dues – FIR alleged defalcation of ₹5383 crores – OTS amount across Indian and foreign entities aggregated ₹6761 crores – Petitioners deposited ₹3507.63 crores; banks recovered ₹1192 crores under IBC liquidation – Net unpaid amount computed at ₹2061.37 crores – Investigating Agencies, after consultation with banks, sought ₹5100 crores as full settlement – Petitioners consented to deposit entire amount [Paras 1–9, 10].
Settlement – Effect on Criminal Proceedings – Held: Given petitioners’ offer to deposit ₹5100 crores—exceeding assessed dues—Court satisfied that continuation of prosecution unnecessary; consensual full repayment ensures recovery of public funds – Criminal, civil, regulatory and attachment proceedings to be quashed upon deposit [Paras 10–12].
PMLA, SFIO, Black Money Act, FEPA – Quashing of Multiple Proceedings – FIRs, ECIRs, prosecution complaints, attachments, freezing orders, fugitive offender proceedings, and Company Act prosecutions – All such matters directed to be closed in entirety upon fulfilment of deposit condition [Paras 1, 12(i)].
Directions – Deposit and Disbursement – Petitioners to deposit ₹5100 crores on or before 17.12.2025 with Registry – Amount to be kept in short-term interest-bearing fixed deposit until disbursement – Registrar (Judicial–Administration) to proportionately distribute amounts to lender banks after verification – Registrar permitted to seek assistance or clarification from Bench [Paras 12(ii)–12(iv)].
Precedent – Limitation – Held: Directions passed solely in unique factual circumstances involving massive financial irregularity, OTS, and deposit of entire demanded amount – Order not to be treated as precedent [Para 12(vi)].
Decision: Writ petitions allowed – All FIRs, ECIRs, prosecution complaints, attachment and freezing proceedings under PMLA, proceedings under the Fugitive Economic Offenders Act, SFIO prosecution under the Companies Act, and Black Money Act prosecutions against the petitioners directed to be quashed – Quashing to operate upon deposit of ₹5100 crores with the Supreme Court Registry on or before 17.12.2025, to be disbursed proportionately to lender banks – Directions passed in the peculiar facts of the case and not to be treated as precedent [Paras 10–12].
