Subhash Chandra Gets ₹22,000 Cr Debt Settlement For ₹6.5 Cr | 99.97% Haircut Sparks Row
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Subhash Chandra Gets ₹22,000 Cr Debt Settlement For ₹6.5 Cr | 99.97% Haircut Sparks Row
Subhash ChandraNational Company Law Tribunal

Subhash Chandra plans to work with investment professionals in Switzerland, may borrow Rs 2-4 crore from family for start-ups; NCLT approved debt plan with creditors recovering only 0.03%

Subhash Chandra plans to collaborate with investment professionals in Switzerland and may borrow ₹2-4 crore from family for start-ups, following the NCLT's approval of a debt repayment plan that allows creditors to recover only 0.03% of the ₹22,006.57 crore owed to them.

NDTV28 August 2026 · 18:45 UTC
CuriousCats Full Story

Subhash Chandra is set to engage with investment professionals in Switzerland, potentially borrowing ₹2-4 crore from family to fund start-ups. This comes after the National Company Law Tribunal (NCLT) approved a debt repayment plan, allowing creditors to recover a mere 0.03% of the ₹22,006.57 crore owed.

Chandra stated, "Right now, I have a plan to work with my friends in Switzerland who do investment work. I will give you the details in the next 1-2 weeks. Might also take a loan of ₹2-4 crore from family and invest it in some of our start-ups that can move forward," indicating a proactive approach despite financial challenges.

He emphasized his resilience, saying, "Today I'm talking in a very simple way. I am not talking about a person who has lost everything. The last ₹6.5 crore I have left with will have to pay according to the plan. I have a small residential house, which I have given on rent, and I am running my expenses with that income. I have no regrets. I will earn again. I am a pioneer. I know how to do good and new things. I will continue to do so."

The approved repayment plan reveals that only ₹6.5 crore will be available for distribution against the ₹22,006.57 crore in claims, resulting in a staggering 99.97% haircut for creditors, highlighting the severity of the financial situation.

Key Insight
“Under the approved plan, creditors will recover just Rs 6.5 crore against admitted claims of Rs 22,006.57 crore, a haircut of nearly 99.97%. Chandra said he has no regrets and will earn again, noting he has a small residential house providing rental income for expenses.”
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NDTV
“Media baron has said that he plans to work with investment professionals in Switzerland and may even borrow money from his family to invest in start-ups, days after the National Company Law Tribunal (NCLT) approved a repayment plan under which creditors will receive only a fraction of the Rs 22,006.57 crore they had claimed from him.”
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EARLIER IN THE STORY:
NCLT approves Subhash Chandra's Rs 6.25 crore repayment plan; HDFC Bank weighs appeal as lenders oppose
RediffRediff
NCLT approves Subhash Chandra's Rs 6.25 crore repayment plan; HDFC Bank weighs appeal as lenders oppose

HDFC Bank, India's largest private sector lender, is weighing an appeal against the NCLT's approval of a resolution plan requiring Subhash Chandra to pay Rs 6.25 crore as a personal guarantor against admitted claims of Rs 22,000.57 crore.

Axis BankCanara BankCreditors Oppose Plan
2026-08-28
TL;DR by CuriousCats.ai
  • NCLT approved a repayment plan requiring Subhash Chandra to pay Rs 6.25 crore against admitted claims of Rs 22,000.57 crore.
  • HDFC Bank and other lenders voted against the plan, with HDFC Bank considering an appeal to NCLAT.
  • Subhash Chandra is facing insolvency as a personal guarantor for loans taken by the Essel group.
  • Chandra claims he has not personally borrowed money and is only facing insolvency proceedings as a personal guarantor.
  • Government sources clarified that the NCLT's approval does not imply a 99.97 per cent loss on loans, as the Rs 22,000.57 crore figure represents claims against Chandra as a personal guarantor.
  • LICHFL opposed the plan, stating it was provided only Rs 38.09 lakh against an admitted claim of Rs 1,322.39 crore, calling the payment terms 'unviable and unlawful'.
Subhash Chandra says he has not borrowed any money, is only a Personal Guarantor; NCLT approves his debt repayment plan
The HinduThe Hindu
Subhash Chandra says he has not borrowed any money, is only a Personal Guarantor; NCLT approves his debt repayment plan

Zee Group founder Subhash Chandra clarified that he has not borrowed any money from any lender and is only a personal guarantor.

Borrowed MoneyBorrower EntitiesClaim Settlement
2026-08-27
TL;DR by CuriousCats.ai
  • Subhash Chandra has clarified that he has not borrowed any money from any lender and is only a personal guarantor.
  • The NCLT has approved Subhash Chandra's debt repayment plan.
  • The total claim against him as a Personal Guarantor in the personal insolvency proceedings is only ₹93,992 crore by the objectors, not ₹22,000 crore (the total claim), out of which ₹21,696 crore was admitted by the Resolution Professional.
  • Of the ₹93,992 crore claim, ₹620 crore has been settled and a further ₹1,063 crore has been offered to be paid by the borrower entities.
  • The borrowing entities for whom Mr. Chandra has provided Personal Guarantees have till date repaid ₹43,000 crore and have assured to settle any other amount that would be due.
NCLT ruling reduces Subhash Chandra's personal liability; leading banks face 99% haircut as repayment plan approved
The HinduThe Hindu
NCLT ruling reduces Subhash Chandra's personal liability; leading banks face 99% haircut as repayment plan approved

Subhash Chandra secured an NCLT order to settle his personal guarantee worth ₹22,006.57 crore by paying only ₹6.5 crore, forcing creditors to take a 99% haircut.

99% HaircutAppearance Corpcall Capital Advisors LlpAxis Bank
2026-08-27
TL;DR by CuriousCats.ai
  • NCLT approved the repayment plan, excluding claims submitted by Anil Kumar (on behalf of 960 individuals) and Sunil Jain (on behalf of 300 individuals) from the final list of creditors, with redistribution of the repayment amount among remaining eligible creditors.
  • Creditors opposing the plan included Axis Bank, RBL Bank, IndusInd Bank, IDBI Trusteeship (for Franklin Templeton), LIC Housing Finance, and Union Bank of India, with a collective vote share of 19.186%.
  • HDFC Bank and other creditors objected that certain associate entities held approximately 61.78% voting share in the Committee of Creditors (CoC), and their votes should not be counted.
  • The Resolution Professional (RP) Shiv Nandan Sharma stated that Mr. Chandra's estate may not cover process expenses, and that Mr. Chandra proposed to sell all his assets and deposits to pay ₹96.5 crore, putting everything he has into the proposal.
  • Net worth certificates from 2017 and 2018 showed Mr. Chandra's net worth at $7.17 billion (₹45,888 crore) and ₹40,562 crore respectively, leading Canara Bank to argue the plan offered only 0.028% of his asset value.
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NCLT approves Subhash Chandra's Rs 6.5 crore repayment plan against Rs 22,006.57 crore claims; lenders face 99.97% haircut
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NCLT approves Subhash Chandra's Rs 6.5 crore repayment plan against Rs 22,006.57 crore claims; lenders face 99.97% haircut

The plan was approved under Section 114 of the IBC by Nilesh Sharma, appointed after a split verdict, despite objections from LIC Housing Finance calling it 'unviable and unlawful'. The tribunal reasoned that rejecting the plan could push Chandra into bankruptcy, reducing recovery prospects for creditors.

Creditors face 99.97% haircut in Subhash Chandra insolvency case; Congress slams NCLT as 'Neta-Company Loot Tribunal' over Rs 6.5 cr pre-settlement
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Creditors face 99.97% haircut in Subhash Chandra insolvency case; Congress slams NCLT as 'Neta-Company Loot Tribunal' over Rs 6.5 cr pre-settlement

The Congress party's attack on NCLT highlights political scrutiny over the settlement, which was reached before the insolvency proceedings. The Rs 6.5 cr pre-settlement is a fraction of the total debt, underscoring the severity of the haircut for creditors.

Vijay Mallya congratulates Subhash Chandra on ₹96.5-crore repayment proposal; 'Indian Debt Resolution Justice I Presume. No Media Questions'
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Vijay Mallya congratulates Subhash Chandra on ₹96.5-crore repayment proposal; 'Indian Debt Resolution Justice I Presume. No Media Questions'

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.

Rahul Gandhi slams NCLT as 'Neta-Company Loot Tribunal' over Subhash Chandra insolvency plan; alleges Modi govt created two systems in India
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Gandhi cited a farmer losing land for a ₹50,000 default and salaried workers facing 'bank goons' for a missed EMI, contrasting with billionaires treated as 'friends.' Jairam Ramesh called the ₹6.5 crore recovery against ₹22,006.57 crore claims 'a mundan,' accusing the tribunal of mocking the IBC.

NCLT clears Subhash Chandra's ₹6.5 crore payout against ₹22,006 crore claims; Congress calls it 'not haircut but mundan'
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The NCLT's third member, Nilesh Sharma, approved the plan under Section 114 of the IBC, rejecting objections from LIC Housing Finance, which would recover only ₹38.09 lakh against its ₹1,322.39 crore claim. The plan was approved by 80.81% of vote shares, and the tribunal ruled it binds all creditors under Section 115.

NCLT approves Subhash Chandra's repayment plan; sources clarify it is not a Rs 22,000 crore bank loan write-off
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The plan recovers only about ₹6.25 crore from Chandra's personal estate, while principal corporate borrowers remain liable for their debts. Creditors, including LIC Housing Finance and HDFC Bank, opposed the plan, but it passed with 80.81% voting share.

NCLT approves Subhash Chandra's ₹6.5 crore repayment plan; creditors face 99.97% haircut as dissenting banks hold under 20% voting share
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NCLT approves Subhash Chandra's ₹6.5 crore repayment plan; creditors face 99.97% haircut as dissenting banks hold under 20% voting share

The tribunal's order, passed by Nilesh Sharma as third member after a split verdict, binds all creditors under Section 115 of the IBC. It rejected claims of skewed voting, noting dissenting creditors like LIC Housing and HDFC Bank held less than 20% voting share, and cited Chandra's net worth drop from ₹45,888 crore in 2017 to ₹31.79 crore now.

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