Archive · 28 Aug 2026
Sources Clarify Subhash Chandra’s NCLT Claims, Reject ₹22,000 Crore Write-Off
Subhash Chandra did not personally borrow ₹22,006 crore from banks.
The figure describes guarantees he gave for loans taken by companies linked to the Essel and Zee groups.
About ₹2,574 crore involved guarantees given when the original loans were made.
The rest of the guarantees were mostly added later as extra security.
The tribunal’s plan expects about ₹6.25 crore from Chandra’s available personal assets.
The companies that borrowed the money still owe their debts and are expected to pay about ₹1,494 crore.
Some lenders objected because they questioned whether all of Chandra’s assets had been examined.
However, creditors approved the plan with 80.81% support, and the tribunal rejected the objections as insufficient.
The government says this unusual guarantor case should not be treated as a typical example of IBC recoveries.
The ₹22,006 crore figure represents admitted personal-guarantee claims linked to Essel/Zee companies, not loans Subhash Chandra personally borrowed.
Only about ₹2,574 crore relates to guarantees provided when the original loans were taken; most were later additional security.
The NCLT-approved plan provides about ₹6.25 crore from Chandra’s estate and around ₹1,494 crore from principal corporate borrowers.
Creditors approved the plan with 80.81% support, although LIC Housing Finance, HDFC Bank, Axis Bank and other lenders opposed it.
Government sources called the case exceptional, citing broader IBC recoveries of ₹4.32 lakh crore through approved plans up to March 2026.
- Who
- Subhash Chandra, Essel/Zee-linked corporate borrowers, creditors, objecting lenders and the National Company Law Tribunal.
- What
- The NCLT approved a repayment plan resolving Chandra’s liability as a personal guarantor, while leaving the principal borrowers liable.
- When
- The clarification was reported on Thursday; broader recovery figures cited extend up to March 2026.
- Where
- Before the National Company Law Tribunal in India.
- Why
- The proceeding followed a default on a Vivek Infracon loan from Indiabulls for which Chandra had provided a personal guarantee.
Government Sources and Approved Plan
Objecting Lenders and Chandra’s Office
Meaning of the ₹22,006 crore figure
Government Sources and Approved Plan
Government sources said it represents admitted claims against Chandra’s guarantees and should not be described as ₹22,006 crore of personal borrowing or a bank write-off.
Objecting Lenders and Chandra’s Office
Chandra’s office likewise said the figure represented guarantees for corporate loans, while objecting lenders challenged the resulting low personal recovery.
Amount recoverable from Chandra
Government Sources and Approved Plan
The approved plan reflects assets currently disclosed as available or realisable from Chandra’s estate, producing a personal payment of about ₹6.25 crore.
Objecting Lenders and Chandra’s Office
Creditors cited much higher historical net-worth certificates and sought deeper scrutiny of whether Chandra’s assets had been fully examined.
Recovery from borrowing companies
Government Sources and Approved Plan
Government sources said principal borrowers remain liable and that the plan envisages about ₹1,494 crore in payments, alongside recovery from securities and other assets.
Objecting Lenders and Chandra’s Office
Chandra’s office cited proposed settlements of about ₹1,113 crore with multiple lenders and said borrowing entities disputed some claims, producing a different account of potential recovery.
- Admitted claims
- Approximately ₹22,006 crore was admitted against Chandra as a personal guarantor.
- Guarantees at original borrowing
- About ₹2,574 crore related to guarantees provided when the relevant loans were originally taken.
- Personal repayment
- The approved plan provides approximately ₹6.25 crore from Chandra’s personal estate; some reports describe the payout as about ₹6.5 crore.
- Corporate-borrower payments
- The plan envisages around ₹1,494 crore from principal borrowers; Chandra’s office separately cited proposed settlements of about ₹1,113 crore with multiple lenders.
- Creditor vote
- The plan received 80.81% support by creditor voting share.
- Historical net worth
- Creditors cited certificates showing net worth of ₹45,888 crore in 2017 and ₹40,562 crore in 2018, compared with a presently disclosed figure of about ₹31.79 crore.
- Broader IBC recoveries
- Government sources said creditors recovered approximately ₹4.32 lakh crore through approved resolution plans up to March 2026.
