Archive · 28 Aug 2026
Reliance Denies Chandra's Media Allegations Amid Insolvency Dispute
Subhash Chandra is involved in a personal insolvency case connected to loans taken by Essel and Zee-linked companies.
He says he only guaranteed the loans and did not personally borrow the money.
Some reports described the case as a nearly 99.97% loss for banks.
Government sources said this is misleading because most of the reported claims were against companies, not directly against Chandra.
The companies still have to repay their debts, and creditors can pursue their assets and securities.
The proposed plan includes about Rs 1,494 crore from the companies and Rs 6.25 crore from Chandra.
The National Company Law Tribunal approved the plan after it received 80.81% support from creditors.
Several lenders disagreed and questioned the large decline in Chandra's disclosed net worth.
Reliance also rejected Chandra's suggestion that its media brands spread misleading or attacking coverage.
Reliance Group denied Subhash Chandra's allegations that its media entities were used to attack him.
Government sources said the reported 99.97% haircut does not represent losses on more than Rs 22,000 crore in loans.
The Rs 22,006 crore figure consists of claims against Chandra as a personal guarantor, while borrowing companies remain liable.
The repayment plan includes about Rs 1,494 crore from principal borrowers and Rs 6.25 crore from Chandra personally.
The NCLT approved the plan after 80.81% creditor support, although several lenders opposed it and sought greater asset scrutiny.
- Who
- Reliance Group, Essel Group chairman Subhash Chandra, government sources, the National Company Law Tribunal, and creditor banks.
- What
- Reliance denied allegations concerning its media brands as officials and Chandra disputed how his insolvency claims and repayment plan were being described.
- When
- The statements were issued on Thursday and Friday, August 28, 2026; the repayment plan was approved during the same week.
- Where
- The dispute concerns proceedings before India's National Company Law Tribunal and statements issued from Mumbai.
- Why
- The controversy followed reports describing claims of more than Rs 22,000 crore against Chandra as a 99.97% bank haircut and his criticism of media coverage.
Reliance and Government Position
Chandra and Critical Lenders' Position
Interpretation of the haircut
Reliance and Government Position
Government sources said the 99.97% figure applies to recovery from Chandra as a personal guarantor, not to the full amount of loans taken by the companies.
Chandra and Critical Lenders' Position
Reports highlighted the comparison between more than Rs 22,000 crore in claims and roughly Rs 6.25 crore recoverable from Chandra's personal estate.
Media coverage
Reliance and Government Position
Reliance said its media brands have never been used to attack anyone and denied Chandra's allegations and insinuations.
Chandra and Critical Lenders' Position
Chandra accused certain vested media houses of spreading incorrect information about his insolvency proceedings and urged them to correct it.
Repayment plan and asset scrutiny
Reliance and Government Position
Government sources said the companies remain liable, creditors can pursue their assets, and the plan received 80.81% creditor support.
Chandra and Critical Lenders' Position
Several lenders opposed the plan, citing the sharp fall in Chandra's disclosed net worth and seeking greater scrutiny of his assets.
- Admitted claims
- About Rs 22,006 crore in claims were filed, with Rs 21,696 crore admitted according to Chandra.
- Proposed recovery from Chandra
- About Rs 6.25 crore from his personal estate; the NCLT report described total creditor recovery as around Rs 6.5 crore.
- Principal borrower payments
- The repayment plan envisages around Rs 1,494 crore from the companies that originally borrowed the money.
- Creditor support
- The plan received 80.81% support from creditors.
- Objecting lenders
- LIC Housing Finance, HDFC Bank, Axis Bank, Canara Bank, RBL Bank, and Union Bank opposed the plan.
- Claims cited by Chandra
- Lenders opposing his plan had claims of Rs 3,992 crore; Rs 620 crore was reportedly settled, leaving Rs 3,372 crore.
- Disclosed net worth figures
- Creditors cited net-worth certificates of Rs 45,888 crore in 2017 and Rs 40,562 crore in 2018, compared with about Rs 31.79 crore currently disclosed.
