Essel Group founder Subhash Chandra has said borrowers linked to his personal guarantees have assured him that they will reconcile their accounts with lenders and settle claims amounting to ₹4,262 crore.
The clarification comes after the National Company Law Tribunal (NCLT) approved a resolution plan in Chandra’s personal insolvency proceedings that requires a payment of ₹6.25 crore to creditors. Some lenders have opposed the plan and are considering legal challenges.
Why Is ₹4,262 Crore Being Discussed?
According to a statement issued by Chandra’s office, borrowers had received ₹4,808 crore in total, of which ₹3,803 crore had already been paid.
The statement said the underlying payable amount was ₹998 crore. Lenders had filed claims of ₹5,311 crore, but after deducting ₹1,049 crore in settled or paid claims, the remaining claims were calculated at ₹4,262 crore.
| Particulars | Amount |
|---|---|
| Total amount disbursed | ₹4,808 crore |
| Amount paid | ₹3,803 crore |
| Underlying payable amount | ₹998 crore |
| Claims filed | ₹5,311 crore |
| Settled/paid claims | ₹1,049 crore |
| Claims cited as remaining | ₹4,262 crore |
Important: The ₹4,262 crore figure is based on the explanation provided by Chandra’s office and should not be described as the NCLT’s final admitted liability figure.
Subhash Chandra Personal Guarantees: ₹22,006.57 Crore
Chandra had reportedly provided personal guarantees for borrowings of around ₹22,000 crore.
In his personal insolvency proceedings, the NCLT recorded admitted claims of approximately ₹22,006.57 crore.
This is substantially different from the ₹4,262 crore figure because the two numbers relate to different calculations and sets of claims.
| Figure | What it represents |
|---|---|
| ₹22,006.57 crore | Claims admitted in Chandra’s personal insolvency proceedings |
| ₹4,262 crore | Remaining claims cited by Chandra’s office after its reconciliation |
| ₹6.25 crore | Payment to creditors under the NCLT-approved resolution plan |
NCLT Approves ₹6.25 Crore Resolution Plan
The NCLT approved a resolution plan under which Chandra is required to pay ₹6.25 crore to creditors. An additional amount was provided for insolvency-resolution process costs.
The plan received the required support from creditors who voted on it, with reports putting the approval vote at around 80.8%.
However, the resolution has faced opposition from some lenders, including HDFC Bank and LIC Housing Finance, who have raised objections over the recovery available under the plan.
Lender-Wise Claims Cited by Chandra’s Office
Chandra’s office also provided a breakdown of several lender claims and its position regarding the securities or guarantees involved.
| Lender | Amount Cited |
|---|---|
| HDFC Bank | ₹775 crore |
| Canara Bank | ₹348 crore |
| LIC Housing Finance | ₹1,322 crore |
| Union Bank | ₹164 crore |
| RBL Bank | ₹119 crore |
| IndusInd Bank | ₹240 crore |
| Edelweiss | ₹565 crore |
| Franklin Templeton | ₹729 crore |
The statement said some of these exposures were backed by securities, while others were subject to settlement discussions or legal proceedings.
HDFC Bank and LIC Housing Finance Raise Objections
The NCLT resolution has become controversial because some lenders believe the proposed recovery is too low compared with their admitted claims.
HDFC Bank and LIC Housing Finance are among the lenders reported to be considering or pursuing legal action against the resolution.
Chandra’s office, meanwhile, has maintained that several liabilities were backed by adequate assets or securities and that borrowers had offered to settle outstanding amounts.
What Did Subhash Chandra Say?
Chandra’s office has maintained that his personal borrowing was zero and that the large figures involved in the case largely relate to personal guarantees provided for borrowing entities.
This distinction is important because providing a personal guarantee is different from personally borrowing the entire amount.
The current dispute centres on how those guarantees, lender claims, underlying borrower liabilities and available securities should be treated.
What Happens Next?
The borrowers associated with the guarantees have reportedly assured Chandra that they will reconcile their accounts with lenders and settle the outstanding claims.
Meanwhile, lenders opposing the NCLT-approved resolution may continue their legal challenge.
The case is therefore not simply about the ₹6.25 crore payment. It also involves disputes over lender claims, personal guarantees, underlying borrower liabilities and the value of securities available to creditors.
Bottom Line
The Subhash Chandra insolvency case involves admitted creditor claims of approximately ₹22,006.57 crore, while Chandra’s office has separately cited ₹4,262 crore in remaining claims after its own reconciliation.
The NCLT has approved a resolution plan providing ₹6.25 crore to creditors, but some major lenders have challenged or are considering challenging the outcome.
As the legal proceedings continue, the final treatment of the disputed claims and guarantees remains subject to further developments.
