Rs 22,006 Crore Claims, Rs 6.5 Crore Payout: NCLT Clears Subhash Chandra Plan
The tribunal said the resolution professional’s valuation showed Chandra’s estate was worth far less than creditor claims and that lenders approved the plan by 80.81%.
- On Tuesday, the National Company Law Tribunal Delhi Bench approved Zee group founder Subhash Chandra's personal repayment plan, allowing him to settle approximately Rs 22,006 crore in admitted claims with a payment of Rs 6.5 crore.
- The decision followed a split verdict from the original tribunal members, prompting the NCLT President to appoint Judicial Member Nilesh Sharma as a third member to resolve the disagreement.
- Lenders including LIC Housing Finance argued the payout was "unviable and unlawful," as the plan results in a haircut of roughly 99.97 per cent for creditors.
- Congress MP Jairam Ramesh criticized the development on Thursday, calling the settlement a "mundan" that makes a "complete mockery" of the Insolvency and Bankruptcy Code, 2016, while Chandra offered no immediate reaction.
- The tribunal observed that approving the plan could improve objectors' chances of recovering debts directly from Principal Debtors, as the tribunal emphasized it does not substitute its own commercial wisdom for creditors' decisions.
22 Articles
22 Articles
Govt Sources Reject 99.97% Haircut Claim in Subhash Chandra Insolvency Case
Get latest articles and stories on Business at LatestLY. Government sources have rejected reports suggesting that banks have taken a 99.97 per cent haircut on more than Rs 22,000 crore of loans in the personal insolvency case involving Essel Group founder Subhash Chandra. Business News | Govt Sources Reject 99.97% Haircut Claim in Subhash Chandra Insolvency Case.
Rs 22,006 Crore Dues, Rs 6.5 Crore Payout: Why Did Subhash Chandra's NCLT Deal Spark A Row
The NCLT has approved a Rs 6.5 crore repayment plan for Subhash Chandra against admitted creditor claims of Rs 22,006.57 crore, prompting the Congress to describe the nearly 99.97 per cent haircut as a “mundan”.
Media Baron Subhash Chandra to Pay Rs 6.5 Cr to Settle Rs 22K Cr Dues, Congress Hits Out
NCLT Member (Judicial) Nilesh Sharma, ruling as a third member, on Tuesday approved the plan under Section 114 of the Insolvency and Bankruptcy Code (IBC), rejecting objections by lenders that the recovery was too meagre to merit approval
Rs 6.5 crore vs Rs 22,000 crore: NCLT clears Subhash Chandra payment plan, Mallya scoffs
The NCLT has approved Subhash Chandra's repayment plan of Rs 6.5 crore against admitted claims of Rs 22,006.57 crore. The order, opposed by some creditors, drew scrutiny over the scale of lender haircuts and triggered reactions from Jairam Ramesh and Vijay Mallya.
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