5 days ago
Subhash Chandra Disputes ₹22,000 Crore Claims in NCLT Case
Dr Subhash Chandra is involved in a loan-related case before the National Company Law Tribunal.
Some reports said he had personally borrowed or guaranteed ₹22,000 crore.
Chandra says that number is wrong.
He says the actual claims against him are ₹3,992 crore.
He also says ₹620 crore has already been settled.
Companies connected to the loans have offered another ₹1,063 crore.
Those companies have repaid nearly ₹43,000 crore of about ₹45,000 crore in company dues.
Chandra says some companies supporting the repayment plan are not legally associate entities.
He asked news organizations to report the court matter accurately.
Dr Subhash Chandra rejected reports saying he personally borrowed or guaranteed loans worth ₹22,000 crore.
He said total claims against him in personal insolvency proceedings amount to ₹3,992 crore.
According to Chandra, ₹620 crore has been settled and borrowing entities offered another ₹1,063 crore.
He said borrowing entities repaid nearly ₹43,000 crore against company dues of about ₹45,000 crore as of January 24, 2019.
His office denied that companies supporting the repayment plan were associate entities, citing a 2008-09 business separation involving Jawahar Goel.
- Who
- Dr Subhash Chandra, Essel Group companies, lenders, and companies involved in the repayment plan.
- What
- Chandra disputed reports about the size of loan claims, his personal liability, his net worth, and the status of entities supporting a repayment plan.
- Where
- The matter concerns personal insolvency proceedings before the National Company Law Tribunal in India.
- When
- The clarification was issued on Thursday; repayment figures cited by Chandra were current as of January 24, 2019.
- Why
- Chandra said the clarification was necessary because media reports had allegedly misinterpreted court documents and spread incorrect information.
Chandra’s clarification
Media reports and lender claims
Size of liability
Chandra’s clarification
Chandra said he had not personally borrowed money and that claims against him totaled ₹3,992 crore, not ₹22,000 crore.
Media reports and lender claims
Certain media reports presented a ₹22,000 crore figure based on claims documents in the NCLT matter, according to Chandra’s statement.
Nature of the guarantee
Chandra’s clarification
Chandra said he was involved only as a personal guarantor for borrowing entities associated with the Essel Group.
Media reports and lender claims
Reports described the matter in terms of personal borrowing or guarantees worth ₹22,000 crore, which Chandra disputed.
Status of supporting companies
Chandra’s clarification
Chandra’s office said companies that voted for the repayment plan did not qualify as associate entities under the Insolvency and Bankruptcy Code.
Media reports and lender claims
Reports alleged that the companies supporting the plan were associate entities, a characterization Chandra’s office said was inaccurate.
Key facts
- Reported loan figure
- ₹22,000 crore, which Chandra said was incorrect.
- Claims against Chandra
- ₹3,992 crore, according to his statement.
- Amount already settled
- ₹620 crore.
- Further settlement offered
- ₹1,063 crore by the borrowing entities.
- Company dues repaid
- Nearly ₹43,000 crore.
- Total company dues
- Around ₹45,000 crore as of January 24, 2019.
- Business separation
- Chandra’s office said Jawahar Goel’s business interests were separated from Chandra’s in 2008-09.
Quotes
Dr Subhash Chandra’s office
Office of the Essel Group chairman responding to claims about repayment-plan participants
“This clarification addresses certain allegations and misleading reports claiming that the companies which voted in favour of the repayment plan are associate entities.”
wionews.com
“I have to state that certain vested media houses are spreading wrong information about my personal insolvency matter in NCLT.”
wionews.com
Sources
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