Archive · 28 Aug 2026
NCLT Approves Subhash Chandra’s Rs 6.5 Crore Repayment Plan
Subhash Chandra guaranteed a large loan taken by a company called Vivek Infracon.
The loan came from Indiabulls Housing Finance in 2016.
After the loan was not repaid, creditors pursued Chandra as the guarantor.
Other lenders also made claims connected to guarantees he had given for different companies.
Altogether, the claims admitted in the case reached Rs 22,006.57 crore.
A repayment plan offered Rs 6.5 crore in total.
Most of that money, Rs 6.25 crore, would go to creditors.
Creditors approved the plan, but several large lenders objected because the recovery was very small.
The NCLT approved the plan, although some lenders may appeal.
The NCLT approved Subhash Chandra’s repayment plan after admitting creditor claims worth Rs 22,006.57 crore.
The plan provides Rs 6.25 crore to creditors and Rs 25 lakh for insolvency-process expenses.
The case began with a Rs 170-crore Vivek Infracon loan from Indiabulls Housing Finance in 2016.
Chandra had personally guaranteed the loan, which was recalled after default in February 2019.
Major lenders, including HDFC Bank and LIC Housing Finance, may challenge the order before the NCLAT.
- Who
- Subhash Chandra, Indiabulls Housing Finance, Vivek Infracon, the Resolution Professional and various creditors, including HDFC Bank and LIC Housing Finance.
- What
- The NCLT approved a Rs 6.5-crore repayment plan in Chandra’s personal insolvency case against admitted claims of Rs 22,006.57 crore.
- When
- The original loan was sanctioned in 2016; the NCLT approved the repayment plan on August 27, 2026, following a decisive ruling on August 25.
- Where
- The proceedings took place before the National Company Law Tribunal, with a possible appeal to the National Company Law Appellate Tribunal.
- Why
- The case arose after Vivek Infracon defaulted on a loan personally guaranteed by Chandra, while other lenders also filed claims linked to his guarantees for company borrowings.
Plan Supporters
Plan Opponents
Whether the plan should be approved
Plan Supporters
The NCLT’s third member supported approval, citing the creditors’ 80.81% voting approval and the assessment of Chandra’s presently realisable personal assets.
Plan Opponents
Several major lenders opposed the plan, arguing that the recovery was extremely low and raising concerns about Chandra’s assets, their valuation and the voting process.
Recovery for creditors
Plan Supporters
Supporters accepted the plan’s Rs 6.25-crore distribution to creditors as reflecting the assessment of assets currently available for recovery.
Plan Opponents
Opposing lenders objected that creditors would receive only a very small fraction of the Rs 22,006.57 crore in admitted claims.
Next legal step
Plan Supporters
The NCLT’s August 27 order concludes the tribunal’s approval stage of the repayment plan.
Plan Opponents
HDFC Bank, LIC Housing Finance and other creditors may challenge the decision before the National Company Law Appellate Tribunal.
- Original loan
- Indiabulls Housing Finance sanctioned Vivek Infracon a Rs 170-crore loan in 2016.
- Loan recall
- The loan was recalled on February 4, 2019, after default.
- Admitted claims
- Claims against Chandra in the personal insolvency process totaled Rs 22,006.57 crore.
- Approved repayment
- The plan totals Rs 6.5 crore: Rs 6.25 crore for creditors and Rs 25 lakh for process expenses.
- Creditor approval
- The plan received 80.81% approval by voting share, but several major lenders opposed it.
- Recovery level
- The approved amount represents roughly 3 paise for every Rs 100 claimed, described in the article as a 99.97% haircut.
- Possible appeal
- HDFC Bank and LIC Housing Finance indicated they were considering or challenging the NCLT order before the NCLAT.