"I would like to thank the entire film industry, prominent personalities and most of all the people of India for their overwhelming gestures of love and support shown towards Sanjay and our family," Priya Dutt said in a statement.
"It is in your lowest moment that we can truly know your friends," she said.
Saying a 20-year ordeal has finally come to an end, she said: "20 years is a lifetime for most people. In Sanjay's case this has been a lifetime of tension and anxiety, a lifetime of repentance and reform, a lifetime of punishment and trial."
Pointing to the agony that her brother had undergone all these years, Priya said: "For Sanjay, versions of verdicts have been passed on him throughout these years. He has been judged by all during these 20 years and sometimes in the most harsh ways."
"Yet he has stood strong and firm, normalised his life, served society, helped and stood by his colleagues, friends and family and is today one of the most dependable people in the film fraternity."
Stating that the Dutts' would explore all the legal options, she said that "as a sister, as a family...we will always stand by him. That is what any loving family will do".
"If the purpose of incarceration is reform and punishment for crime committed, then I believe he has undergone both," Priya Dutt said, adding the family accepted the judgement of the Supreme Court.