4 days ago
Subhash Chandra’s Finances, Repayment Plan Face Fresh Lender Challenge
Subhash Chandra used to lead Zee and the Essel Group.
He said he sold many family and personal assets, including his house, to repay loans.
He says he now has about ₹6.5 crore left.
Under a tribunal-approved plan, most of that money will go to creditors.
A smaller amount will pay the costs of the insolvency process.
Chandra says he lives on rent earned from a small property.
He believes he can start businesses and earn money again.
Some lenders disagree with the plan and want a higher repayment, so they are appealing it.
Subhash Chandra said he sold family assets, including his house, to repay debts and has ₹6.5 crore remaining.
He said ₹6.25 crore of that amount will go to creditors and ₹25 lakh will cover insolvency-process costs.
The NCLT approved his repayment plan on 25 August against admitted claims of about ₹22,006.57 crore.
Chandra said he now funds his expenses through rent from a small residential property and plans to rebuild his wealth.
Canara Bank, Union Bank of India and LIC Housing Finance said they will challenge the approval before the NCLAT.
- Who
- Subhash Chandra, founder of Zee and the Essel Group, and lenders including Canara Bank, Union Bank of India and LIC Housing Finance.
- What
- The NCLT approved Chandra’s ₹6.5 crore repayment plan, while several lenders announced appeals against the order.
- Where
- Before the National Company Law Tribunal and the National Company Law Appellate Tribunal; no specific city is stated.
- When
- The NCLT approved the plan on 25 August; Chandra issued a public statement on 27 August, and lenders announced challenges on 29 August.
- Why
- The proceedings concern claims arising from personal guarantees Chandra provided for borrowings by Essel Group-linked companies.
Chandra’s Position
Lenders’ Position
Size of the debt claims
Chandra’s Position
Chandra said the roughly ₹22,000-crore figure reflects claims tied to corporate borrowings backed by his personal guarantees, rather than money he personally borrowed. He said opposing lenders’ claims total about ₹3,992 crore.
Lenders’ Position
The lenders’ proceedings are based on admitted claims of approximately ₹22,006.57 crore, according to the reports.
Repayment plan
Chandra’s Position
Chandra said he sold assets to repay obligations and accepted the NCLT-approved plan to pay ₹6.25 crore to creditors and ₹25 lakh in process costs.
Lenders’ Position
Canara Bank, Union Bank of India and LIC Housing Finance rejected or opposed the plan and said they would appeal the NCLT’s approval. Canara Bank also sought a forensic audit.
Key facts
- Approved repayment
- ₹6.25 crore to creditors
- Insolvency costs
- ₹25 lakh
- Admitted claims
- Approximately ₹22,006.57 crore
- Remaining funds
- Chandra said he has ₹6.5 crore left
- Creditor support
- Financial creditors holding 80.81% of the voting share supported the plan
- Chandra’s alternative claim figure
- He said lenders opposing the plan represent about ₹3,992 crore in claims
- Appeal forum
- National Company Law Appellate Tribunal
Quotes
Subhash Chandra
Founder of Zee and Essel Group
“We sold our family's assets, we sold our assets, we almost sold (the) Company Zee, we did not keep anything, we even sold our house, but we paid everyone's money”
livemint.com
“I have planned to meet him in the next 1-2 weeks. I will see his investment in India and other places so that I can re-establish myself”
livemint.com
Sources
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