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Essel Group Chairman Subhash Chandra reassured the lenders about the amount taken from different people linked to the group. At the same time, he mentioned that he never took any personal debt and is only supporting his guarantees with Rs. 22,000 crore. This statement came after the National Company Law Tribunal (NCLT) approved a repayment plan in his personal insolvency case. Under the plan, Chandra will pay Rs 6.25 crore against admitted claims of about Rs. 22,006 crore.
According to his statement, borrowers received about Rs. 4,808 crore against guarantees he gave. Around Rs. 3,803 crore was already been repaid, leaving about Rs. 998 crore. After other settled claims, he put the remaining amount at Rs. 4,262 crore.
However, the situation is still under pressure. Some lenders, including those represented by Solicitor General Tushar Mehta, were completely in disagreement with what the NCLT said. They have expressed their intent to challenge the legitimacy of the approved repayment strategy.
The case raised questions among lenders and investors. HDFC Bank, LIC Housing Finance and other creditors opposed the NCLT plan and are considering legal challenges. The key concern is the gap between the amount claimed by lenders and the recovery offered under the plan.
The dispute also affected market sentiment around Zee Entertainment, with its shares falling sharply after the NCLT decision. However, Chandra’s personal insolvency case does not mean Zee itself entered insolvency. The company’s operations remain separate from his personal repayment process.
The lender challenges could keep the case in focus. Chandra’s assurance that group-linked borrowers will settle their dues may help ease some concerns, but creditors still have to decide whether the proposed recovery is acceptable. Further proceedings before the NCLAT could bring more clarity.
