2 days ago
Subhash Chandra Shifts Focus to Essel Debt Repayment
Subhash Chandra spoke to people on Instagram about his debts and insolvency case.
He said he was a guarantor for loans taken by companies connected to the Essel Group.
This means he promised to help repay the loans if the companies could not do so.
He said around 85 borrowers had agreed to settle about ₹990 crore owed to banks.
Chandra also defended a plan to pay creditors about ₹6.25 crore from his personal assets.
The total claims against him are about ₹22,006 crore.
Some lenders believe his plan offers too little and question how it was approved.
They may ask another tribunal to review the decision.
During an 18-minute Instagram interaction, Subhash Chandra largely avoided revisiting allegations against Mukesh Ambani and Reliance-linked media outlets.
Chandra said about 85 borrowers associated with the Essel Group had agreed to repay approximately ₹990 crore in outstanding bank debt.
He said the ₹22,006 crore in claims arose from personal guarantees for loans taken by 18 to 20 Essel-linked entities, rather than from his own borrowing.
His insolvency plan proposes contributing about ₹6.5 crore, including roughly ₹6.25 crore for creditors, against admitted claims of about ₹22,006 crore.
Lenders including HDFC Bank and LIC Housing Finance are preparing to challenge the repayment plan before the National Company Law Appellate Tribunal.
- Who
- Zee founder Subhash Chandra, borrowers linked to the Essel Group, and lenders including HDFC Bank and LIC Housing Finance.
- What
- Chandra discussed repayment of Essel-linked borrowers’ debts and defended his personal insolvency resolution plan, while largely making no further reference to his allegations against Mukesh Ambani.
- Where
- During an Instagram interaction attended by about 560 people at its peak; the insolvency proceedings are before the National Company Law Tribunal and may be challenged before the National Company Law Appellate Tribunal.
- When
- Monday, two days after Chandra accused Reliance-linked media outlets of campaigning against him.
- Why
- Chandra said he wanted to clarify that the ₹22,006 crore represented liabilities from personal guarantees and to explain his proposed repayment of about ₹6.5 crore.
Chandra’s position
Creditors’ objections
Nature of the debt
Chandra’s position
Chandra says he was a guarantor, not the actual borrower, and that the ₹22,006 crore figure reflects claims connected to company loans.
Creditors’ objections
Creditors are pursuing his liability as a personal guarantor and say the repayment plan must be assessed against the claims and assets involved in the proceedings.
Proposed recovery
Chandra’s position
Chandra says he is offering about ₹6.5 crore based on the assets available to him and argues that his personal net worth and assets have declined.
Creditors’ objections
Lenders challenge the low recovery, citing earlier net-worth disclosures and seeking greater scrutiny of his assets.
Approval process
Chandra’s position
The repayment plan received sufficient support in the committee of creditors and was backed by the deciding NCLT member after a split verdict.
Creditors’ objections
Dissenting lenders allege that five entities linked to Chandra’s family controlled 61.78% of the voting share and should not have been allowed to vote; they are preparing a legal challenge.
Allegations involving Reliance media
Chandra’s position
Chandra previously accused Reliance-linked media outlets, including TV18 and CNBC-TV18, of spreading misinformation about his insolvency proceedings.
Creditors’ objections
Reliance rejected the allegations as baseless; during the later Instagram interaction, Chandra made little fresh reference to them.
Key facts
- Instagram interaction
- The discussion lasted 18 minutes and drew about 560 people at its peak.
- Borrowers
- Chandra said about 85 borrowers loosely associated with the Essel Group had approximately ₹990 crore in outstanding bank debt.
- Personal guarantees
- He said he guaranteed loans for 18 to 20 entities directly or indirectly linked to the Essel Group.
- Creditor claims
- Admitted claims against Chandra were reported at approximately ₹22,006 crore, with one account citing ₹22,006.57 crore.
- Proposed repayment
- His plan offers about ₹6.25 crore to creditors, with Chandra saying he was prepared to contribute about ₹6.5 crore including process costs.
- Available assets
- Chandra said a Resolution Professional assessed his available assets at about ₹6.79 crore after excluding a residential property valued at ₹25 crore.
- Legal challenge
- Several lenders are preparing to appeal the NCLT decision before the National Company Law Appellate Tribunal.
Sources
Related news
Subhash Chandra, Reliance Clash Over Zee Insolvency Coverage
Reliance Rejects Chandra Allegations Amid Personal Insolvency Dispute
Subhash Chandra Disputes ₹22,000-Crore NCLT Insolvency Claim
Subhash Chandra Disputes ₹22,000 Crore Claims in NCLT Case
Reliance Denies Chandra's Media Allegations Amid Insolvency Dispute
Mukesh Ambani, Subhash Chandra Dispute Puts Wealth, Debt Under Spotlight
Major Banks Cut FCNR Deposit Rates After Subsidy Ends
Uber Driver Returns ₹37,000 Sent by Mistake, Refuses Reward
ICICI Bank Nears HDFC Bank as Nifty’s Top Influence
Brokerages Suggest HDFC Bank, PB Fintech, Parag Milk Foods
Subhash Chandra Challenges NCLT Bench as NCLAT Appeal Waits
