Archive · 29 Aug 2026
LIC Housing’s ₹1,322 Crore Claim Gets ₹38 Lakh Recovery
Subhash Chandra had personally guaranteed loans taken by companies linked to the Essel Group.
Creditors brought an insolvency case against him because of those guarantees.
The NCLT approved a plan under which he will pay ₹6.25 crore.
LIC Housing Finance said it was owed ₹1,322.39 crore in the case.
Under the plan, it is scheduled to receive ₹38.09 lakh.
Chandra’s office says the total claims against him were about ₹3,992 crore, rather than ₹22,000 crore.
LIC Housing Finance says the order does not remove its rights over property pledged as security.
HDFC Bank opposed the settlement and is exploring an appeal.
The case concerns Chandra personally and does not end the corporate debts of the borrowing companies.
LIC Housing Finance had an admitted claim of ₹1,322.39 crore in Subhash Chandra’s personal insolvency proceedings.
The NCLT-approved repayment plan provides LIC Housing Finance ₹38.09 lakh.
The plan requires Chandra to pay ₹6.25 crore against guarantees linked to loans totaling about ₹22,000 crore.
Chandra’s office said claims against him as a personal guarantor totaled about ₹3,992 crore, not ₹22,000 crore.
LIC Housing Finance said its security interests and recovery rights over mortgaged assets remain intact; HDFC Bank is considering an appeal.
- Who
- Subhash Chandra, LIC Housing Finance Limited, HDFC Bank, Indiabulls Housing Finance and creditors of Essel Group-linked companies.
- What
- The NCLT approved Chandra’s personal insolvency repayment plan, under which LIC Housing Finance’s admitted ₹1,322.39-crore claim is allocated ₹38.09 lakh.
- When
- The insolvency proceedings were initiated in 2024; the NCLT approval and related statements were reported on Thursday.
- Where
- The proceedings took place before the National Company Law Tribunal in India.
- Why
- The case followed defaults involving corporate borrowings for which Chandra had provided personal guarantees.
Chandra’s Position
Creditors’ Position
Total liability
Chandra’s Position
Chandra’s office said claims against him as a personal guarantor in the proceedings totaled about ₹3,992 crore, not ₹22,000 crore.
Creditors’ Position
The NCLT-approved plan addresses guarantees connected to loans totaling about ₹22,000 crore, while creditors’ admitted claims formed the basis of the resolution process.
Repayment settlement
Chandra’s Position
Chandra’s proposed plan was approved by the required majority and provides for a total payment of ₹6.25 crore.
Creditors’ Position
HDFC Bank opposed the settlement, voted against it and said it was exploring an appeal to the National Company Law Appellate Tribunal.
Effect on secured assets
Chandra’s Position
The approved personal insolvency plan resolves the proceeding without moving the matter into bankruptcy under the current plan.
Creditors’ Position
LIC Housing Finance said the order does not discharge, dilute or alter the corporate liabilities of principal borrowers and does not affect its security interests or enforcement remedies over secured assets.
- LIC Housing Finance admitted claim
- ₹1,322.39 crore
- LIC Housing Finance recovery under plan
- ₹38.09 lakh
- Total payment proposed by Chandra
- ₹6.25 crore
- Loans covered by guarantees
- About ₹22,000 crore
- Claims cited by Chandra’s office
- About ₹3,992 crore against him as a personal guarantor
- HDFC Bank share of admitted claims
- 3.2%
- Proceedings initiated
- 2024, following a petition by Indiabulls Housing Finance
