Archive · 7 Sep 2026
Zee Entertainment Shares Fall 6% Amid Loan Allegations
Zee Entertainment shares fell after new details about a loan dispute involving Subhash Chandra were reported.
LIC Housing Finance accused Chandra of giving an inflated estimate of his wealth.
The allegations concern two loans worth a total of Rs 980 crore.
The loans were given to companies connected with infrastructure and subscriber-management activities.
LIC Housing Finance is also challenging a plan that would give creditors only about Rs 6.5 crore.
Creditors say this is far less than the roughly Rs 22,006 crore they claim is owed.
An earlier tribunal decision allowed Chandra to settle his personal insolvency case, but a larger tribunal bench paused that decision.
The dispute is connected to loans backed by pledged Zee Entertainment shares.
Zee Entertainment shares fell 6% following reported allegations involving Subhash Chandra and two loans totaling Rs 980 crore.
LIC Housing Finance alleged that Chandra submitted an inflated net worth to secure approval and disbursal of the loans.
The loans included a Rs 500-crore facility for Vasant Sagar Properties and a Rs 480-crore facility for Digital Subscriber Management and Consultancy Services.
LIC Housing Finance challenged a repayment plan under which creditors could recover about Rs 6.5 crore against claims of roughly Rs 22,006 crore.
A National Company Law Tribunal special bench stayed an earlier order allowing Chandra to settle his personal insolvency proceedings.
- Who
- Subhash Chandra, LIC Housing Finance, Zee Entertainment and companies connected to Chandra are involved.
- What
- LIC Housing Finance alleged that Chandra inflated his net worth to obtain two loans totaling Rs 980 crore, while creditors challenged a proposed insolvency repayment plan.
- When
- The report cites a PTI report dated September 5; the shares fell 6% today, though the article does not specify the calendar date.
- Where
- The proceedings are before India’s National Company Law Tribunal and National Company Law Appellate Tribunal.
- Why
- The dispute concerns alleged misrepresentation in obtaining loans and the potential recovery of only about Rs 6.5 crore against creditor claims of roughly Rs 22,006 crore.
Creditors’ recovery concerns
Proposed insolvency settlement
Amount creditors could recover
Creditors’ recovery concerns
LIC Housing Finance opposed the repayment plan because creditors could recover only about Rs 6.5 crore against claims of roughly Rs 22,006 crore.
Proposed insolvency settlement
The earlier NCLT order allowed Chandra to settle his personal insolvency proceedings after he offered Rs 6.25 crore to creditors.
Loan allegations
Creditors’ recovery concerns
LIC Housing Finance alleged that Chandra submitted an inflated net worth to secure approval and disbursal of two loans totaling Rs 980 crore.
Proposed insolvency settlement
The article does not provide a response from Chandra to these allegations.
Tribunal status
Creditors’ recovery concerns
LIC Housing Finance was among lenders that approached the NCLAT against the repayment plan.
Proposed insolvency settlement
A five-member NCLT special bench stayed the earlier single-member bench order, leaving the settlement plan subject to further proceedings.
- Share movement
- Zee Entertainment shares fell 6%.
- Total loans
- The two facilities totaled Rs 980 crore.
- First facility
- A Rs 500-crore facility was extended to Vasant Sagar Properties, with Pan India Infraprojects as co-borrower.
- Second facility
- A Rs 480-crore facility was sanctioned to Digital Subscriber Management and Consultancy Services, with Spirit Infrapower and Multiventures as co-borrower.
- Creditor claims
- Claims against Chandra’s personal estate were roughly Rs 22,006 crore.
- Proposed recovery
- The repayment plan could allow creditors to recover about Rs 6.5 crore.
- Tribunal action
- A five-member NCLT special bench stayed the operation of an earlier order allowing Chandra to settle his personal insolvency proceedings.