Archive · 30 Aug 2026
Lenders Challenge NCLT Approval of Subhash Chandra Repayment Plan
Subhash Chandra proposed a plan to repay money connected to loans taken by companies linked to the Essel Group.
The tribunal approved a plan that would pay creditors ₹6.25 crore, although one report called it a ₹6.5-crore plan.
It would also set aside ₹25 lakh for the insolvency process.
Three lenders disagreed with the plan and want another tribunal to review it.
Most creditors, holding 80.81% of the voting power, supported the proposal.
The case involves claims of about ₹22,006.57 crore linked to Chandra’s personal guarantees.
Chandra says this figure should not be described as money he personally borrowed.
He also says lenders opposing the plan have claims of about ₹3,992 crore.
HDFC Bank is separately considering an appeal and said only 3.2% of its total claim was admitted.
Canara Bank, Union Bank of India (UK) Ltd and LIC Housing Finance plan to challenge the NCLT’s approval before the NCLAT.
The approved proposal is reported as providing ₹6.25 crore to creditors, while one report describes it as a ₹6.5-crore plan, plus ₹25 lakh for insolvency-process costs.
The plan received support from creditors holding 80.81% of the voting share and was approved by the NCLT on August 25.
The three lenders voted against the proposal; Canara Bank also sought a forensic audit, but its request did not proceed because of its minority voting share.
The case concerns admitted claims of approximately ₹22,006.57 crore arising from personal guarantees Subhash Chandra provided for borrowings by Essel Group-linked companies.
- Who
- Subhash Chandra, Canara Bank, Union Bank of India (UK) Ltd, LIC Housing Finance Ltd, HDFC Bank and other financial creditors.
- What
- Lenders are challenging, or considering challenging, the NCLT’s approval of Chandra’s repayment proposal.
- When
- The NCLT approved the plan on August 25; the three public-sector lenders announced their opposition on Saturday, August 29.
- Where
- The dispute is before India’s National Company Law Tribunal, with planned appeals before the National Company Law Appellate Tribunal.
- Why
- The lenders object to the proposed recovery, the approval process and the claims arising from Chandra’s personal guarantees.
Challenging Lenders
Approved Repayment Proposal
Plan approval
Challenging Lenders
Canara Bank, Union Bank of India (UK) Ltd and LIC Housing Finance voted against the proposal and plan to appeal the NCLT’s decision; HDFC Bank is also considering an appeal.
Approved Repayment Proposal
The NCLT approved the plan after creditors holding 80.81% of the voting share supported it.
Recovery amount
Challenging Lenders
The lenders object to the proposed payment of ₹6.25 crore, or ₹6.5 crore according to one report, against admitted claims of approximately ₹22,006.57 crore.
Approved Repayment Proposal
The approved proposal provides the reported creditor payout and ₹25 lakh for insolvency-process costs.
Claims attributed to Chandra
Challenging Lenders
Chandra disputes the portrayal of ₹22,006.57 crore as personal borrowing and says lenders opposing the plan have claims of about ₹3,992 crore.
Approved Repayment Proposal
The insolvency proceedings record admitted claims of approximately ₹22,006.57 crore arising from personal guarantees for corporate borrowings.
Voting and audit process
Challenging Lenders
Union Bank said it sought rejection of the plan but was outvoted, while Canara Bank said its forensic-audit request could not proceed because of its minority voting share.
Approved Repayment Proposal
The proposal was approved through creditor voting, with the required majority supporting it; the reports do not state that the requested forensic audit was approved.
- Reported creditor payout
- ₹6.25 crore in most reports; one report describes the plan as ₹6.5 crore
- Insolvency-process costs
- ₹25 lakh
- Admitted claims
- Approximately ₹22,006.57 crore
- Plan proposer
- Subhash Chandra, Essel Group founder
- Creditor support
- Creditors holding 80.81% of the voting share supported the plan
- Lender voting shares
- Canara Bank: 1.60%; Union Bank of India (UK) Ltd: 0.76%; LIC Housing Finance: 6.09%
- Case origin
- The personal insolvency proceedings were initiated by Indiabulls Housing Finance
- Additional appeal
- HDFC Bank is considering an NCLAT challenge and said only 3.2% of its total claim was admitted
Sources
Canara Bank, Union Bank, LIC Housing Finance To Challenge NCLT Nod To Subhash Chandra’s Rs 6.25 Cr Plan
PSU Lenders To Challenge NCLT Order, Oppose Subhash Chandra’s ₹6.5-Crore Repayment Plan
Canara Bank, Union Bank, LIC Housing to challenge NCLT nod for Subhash Chandra’s ₹6.25 crore payout plan
