- The National Company Law Tribunal (NCLT) has endorsed a personal insolvency plan for Subhash Chandra.
- Subhash Chandra has proposed a repayment of ₹96.5-crore as part of his insolvency resolution.
- Vijay Mallya congratulated Chandra on his repayment proposal while criticizing the debt resolution system.
- Mallya sarcastically remarked on the debt resolution process, stating, "Indian Debt Resolution Justice I presume. No media questions."
- Chandra's resolution moved through personal insolvency provisions under the Insolvency and Bankruptcy Code (IBC), while recoveries from Mallya stem from enforcement actions, asset seizures, and prolonged litigation over defaulted Kingfisher Airlines loans.
Vijay Mallya recently expressed his congratulations to Subhash Chandra regarding a ₹96.5-crore repayment proposal, which he contrasted with his own recovery record. Mallya pointed out the significant gap between the recoveries in his case and the terms sanctioned for other corporate borrowers.
Mallya noted that banks and the central government have publicly acknowledged recovering ₹14,100 crore from his seized assets against an original court judgement debt of ₹96,203 crore. He remarked, "If true, many congratulations to my friend Subhash," highlighting the stark difference in recovery rates.
Chandra's repayment proposal, which follows a ruling from the National Company Law Tribunal (NCLT), involves a payment of ₹6.5 crore to settle admitted creditor claims totaling approximately ₹22,006.57 crore. This amounts to a recovery rate of only 0.03% for lenders, alongside ₹25 lakh allocated for process costs.
While some dissenting financial creditors challenged the nominal payout, the NCLT upheld the decision, stating it could not override the commercial wisdom of the 80.81% majority of creditors who voted to accept the terms. Chandra's resolution was processed under the Insolvency and Bankruptcy Code (IBC), contrasting sharply with Mallya's recoveries, which stem from enforcement actions and asset seizures related to defaulted Kingfisher Airlines loans.
“Mallya's post follows an NCLT ruling endorsing Chandra's personal insolvency plan under the IBC, contrasting with Mallya's own recoveries from enforcement actions and asset seizures over Kingfisher Airlines loans. He sarcastically noted that many borrowers have settled at a fraction, questioning the lack of media scrutiny.”
