Archive · 27 Aug 2026
Mallya Questions Debt Recoveries After Chandra’s Insolvency Plan
Subhash Chandra was allowed to pay Rs 6.5 crore to settle a much larger amount claimed by creditors.
Most voting creditors supported this plan.
Some creditors objected because they thought the payment was too small.
The tribunal said it had to respect the creditors’ commercial decision.
It also said rejecting the plan might lead to an even worse recovery.
Vijay Mallya compared this case with his own debt dispute.
He says Rs 14,100 crore was recovered from him against a judgment debt of Rs 6,203 crore.
Banks have previously cited a lower figure of about Rs 10,000 crore.
The Bombay High Court has asked banks and investigators to clarify the recovery and liability calculations.
The National Company Law Tribunal approved Subhash Chandra’s Rs 6.5-crore repayment plan against claims of about Rs 22,006.57 crore.
The plan allocates Rs 6.25 crore to creditors and Rs 25 lakh to insolvency-process costs, implying a creditor recovery of about 0.03 per cent.
Creditors holding 80.81 per cent of voting shares supported the plan, while dissenters led by LIC Housing Finance called it unviable and unlawful.
Vijay Mallya cited the plan while alleging inconsistent treatment and disputing differing figures for recoveries from his assets.
The Bombay High Court has sought clarification on whether Mallya’s liabilities were cleared through assets attached and transferred to lenders.
- Who
- Vijay Mallya, Subhash Chandra, their creditors, banks, the National Company Law Tribunal, and the Enforcement Directorate.
- What
- Mallya questioned the consistency of India’s debt-resolution system after Chandra’s Rs 6.5-crore personal-insolvency repayment plan was approved.
- When
- Chandra’s plan was approved in the reported NCLT proceedings; Mallya raised recovery questions in December 2025, and he was declared a fugitive economic offender in January 2019.
- Where
- India, including proceedings before the National Company Law Tribunal and the Bombay High Court.
- Why
- Mallya alleges that debt recoveries and repayment outcomes have been calculated or applied inconsistently.
Mallya and dissenting creditors
NCLT and supporting creditors
Size of Chandra’s repayment
Mallya and dissenting creditors
Mallya highlighted the Rs 6.5-crore payment as evidence that some borrowers settle debts for a fraction of the amounts owed. Dissenting creditors led by LIC Housing Finance argued that the proposed recovery was unviable and unlawful.
NCLT and supporting creditors
The NCLT approved the plan after creditors holding the required majority supported it and said the tribunal could not substitute its judgment for the creditors’ commercial decision.
Potential recovery under the plan
Mallya and dissenting creditors
Objecting creditors argued that recovering Rs 6.25 crore against claims of about Rs 22,006.57 crore was inadequate.
NCLT and supporting creditors
The NCLT said the debtor’s personal estate was worth significantly less than the plan’s offer and that rejecting the plan could leave creditors with less because bankruptcy would follow.
Recoveries from Mallya
Mallya and dissenting creditors
Mallya says Rs 14,100 crore was recovered against a Rs 6,203-crore judgment debt and has demanded clarity on differing figures and credits.
NCLT and supporting creditors
Banks have previously cited about Rs 10,000 crore, while the Bombay High Court has sought clarification rather than validating any recovery calculation.
- Chandra’s repayment plan
- Rs 6.5 crore in total: Rs 6.25 crore for creditors and Rs 25 lakh for insolvency-process costs.
- Admitted creditor claims
- Approximately Rs 22,006.57 crore.
- Creditor recovery
- About 0.03 per cent of admitted claims, representing an almost 99.97 per cent haircut.
- Support for the plan
- Creditors holding 80.81 per cent of voting shares supported it.
- Mallya’s claimed recovery
- Rs 14,100 crore recovered against a judgment debt of Rs 6,203 crore, according to Mallya.
- Conflicting recovery figures
- Mallya said the government cited Rs 14,100 crore while banks cited about Rs 10,000 crore; his counsel later referred to approximately Rs 15,000 crore.
- Court clarification
- The Bombay High Court asked the State Bank of India and the Enforcement Directorate to determine whether Mallya’s debts and liabilities had been cleared through attached and transferred assets.
