Insolvency process: Rs 40 billion in debt, Sterling Biotech lands in NCLT

In October 2017, the ED began a probe into alleged money laundering by the company and its promoters, Nitin and Chetan Sandesara

Pharmaceutical company Sterling Biotech has been admitted by the National Company Law Tribunal (NCLT) for insolvency proceedings under the Corporate Insolvency Resolution Process (CIRP).

The Gujarat-based company owes banks more than Rs 40 billion. Its parent, the Sterling Group, along with other businesses, owes lenders more than Rs 50 billion. 

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Advocate Shyam Kapadia approached the NCLT on behalf of Andhra Bank, stating that while the firm’s debts piled up, the promoters had fled the country. As of December 2016, the company defaulted on