Key Verdict in Subhash Chandra’s Insolvency Case

A major development has emerged in Zee Group founder Subhash Chandra’s personal insolvency proceedings. The National Company Law Tribunal (NCLT) has approved a repayment plan under which creditors with admitted claims of around ₹22,006.57 crore will receive only ₹6.5 crore. This translates into a recovery of roughly 0.03% and a haircut of nearly 99.97% for lenders. The insolvency proceedings relate to personal guarantees Chandra had provided for loans extended to Essel Group-linked entities.

NCLT Member (Judicial) Nilesh Sharma, acting as the third member of the tribunal, approved the plan. Several creditors led by LIC Housing Finance had opposed the proposal, describing the payout as “unviable and unlawful”, but their objections were rejected. LIC Housing Finance had an admitted claim of ₹1,322.39 crore, against which the proposed repayment was only ₹38.09 lakh, amounting to approximately 0.028% of its dues.