Archive · 28 Aug 2026
HDFC Bank Weighs NCLAT Appeal Over Subhash Chandra Insolvency Plan
Subhash Chandra guaranteed loans taken by companies linked to the Essel and Zee groups.
One company defaulted, so a lender began insolvency proceedings against Chandra as a guarantor.
The NCLT approved a plan under which creditors would receive about ₹6.5 crore.
The claims cited in the NCLT matter total about ₹22,006.57 crore, although Chandra says the objecting lenders’ claims are ₹3,992 crore.
HDFC Bank disagreed with the plan and voted against it.
The bank is considering asking the NCLAT to review the decision.
Chandra says he did not personally borrow the money and only provided guarantees.
He also says the borrowing companies repaid about ₹43,000 crore.
Government sources say the case is an unusual personal-guarantor resolution and should not represent typical insolvency recoveries.
The NCLT approved a repayment plan offering creditors about ₹6.5 crore against claims reported at ₹22,006.57 crore.
HDFC Bank opposed and voted against the plan, saying its claim represented 3.2% of the total stated amount.
The proceedings began after Vivek Infracon defaulted on a ₹170 crore loan personally guaranteed by Subhash Chandra.
Indiabulls Housing Finance initiated the insolvency case in 2022, and the NCLT admitted it in April 2024.
Chandra says objecting creditors’ claims total ₹3,992 crore, with ₹620 crore settled and borrowing companies repaying about ₹43,000 crore.
- Who
- Subhash Chandra, HDFC Bank, LIC Housing Finance, Indiabulls Housing Finance, and other creditors.
- What
- The NCLT approved a personal-insolvency repayment plan offering about ₹6.5 crore against claims reported at ₹22,006.57 crore; HDFC Bank is considering an NCLAT appeal.
- When
- The case was initiated in 2022, admitted in April 2024, and the repayment plan was approved this week.
- Where
- Before the National Company Law Tribunal, with a possible challenge before the National Company Law Appellate Tribunal.
- Why
- The proceedings arose from defaults on loans for which Chandra had provided personal guarantees, including a ₹170 crore Vivek Infracon loan.
HDFC Bank and dissenting creditors
Subhash Chandra and government sources
Adequacy of recovery
HDFC Bank and dissenting creditors
HDFC Bank and dissenting lenders opposed the plan, arguing that the proposed recovery was too small; LIC Housing Finance described it as unviable and unlawful.
Subhash Chandra and government sources
The NCLT rejected the objections and approved the plan. Chandra pointed to his limited personal assets, including assets valued at ₹31.79 crore in 2024.
Size of the claims
HDFC Bank and dissenting creditors
The NCLT matter is reported as involving admitted claims of ₹22,006.57 crore, with creditors receiving only about ₹6.5 crore.
Subhash Chandra and government sources
Chandra says the objecting creditors’ claims total ₹3,992 crore, of which ₹620 crore has been settled and ₹1,063 crore was offered by borrowing entities. He also said ₹21,696 crore was admitted from total filed claims, creating a discrepancy with the larger figure cited in the NCLT reporting.
Meaning of the haircut
HDFC Bank and dissenting creditors
Comparing ₹6.5 crore with ₹22,006.57 crore implies a recovery of only a very small fraction of the claims, or a haircut of nearly 99.97%.
Subhash Chandra and government sources
Government sources said the comparison concerns recovery from Chandra as a personal guarantor, not a 99.97% loss on ₹22,000 crore of personal borrowing, and called the matter exceptional.
- Approved repayment
- About ₹6.5 crore
- Claims cited in NCLT matter
- ₹22,006.57 crore; Chandra separately said ₹21,696 crore was admitted from total filed claims
- HDFC Bank position
- It opposed and voted against the plan and is exploring an appeal before the NCLAT
- HDFC Bank claim
- ₹680 crore, described by the bank as 3.2% of the total stated claim amount
- Originating loan
- A ₹170 crore Vivek Infracon loan personally guaranteed by Subhash Chandra
- Case history
- Indiabulls Housing Finance filed the insolvency case in 2022; proceedings were admitted in April 2024
- Chandra’s alternative figures
- He says objecting creditors’ claims total ₹3,992 crore, including ₹620 crore already settled
