Subhash Chandra clarifies Rs 22,000 crore figure does not reflect current status of matter
New Delhi, Aug 27 (IANS) Essel Group founder Subhash Chandra said on Thursday that he did not personally borrow money from the lenders involved in the NCLT proceedings and was only a personal guarantor for loans taken by borrowing entities associated with the broader group.
In a statement, Subhash Chandra said the Rs 22,006 crore figure being reported represents total claims filed in the proceedings and does not reflect the current status of the matter.
According to him, the total claims filed in the case amounted to Rs 22,006 crore, of which Rs 21,696 crore were admitted by the resolution professional. However, he said lenders who objected to the repayment plan had claims totalling only Rs 3,992 crore. Of this, claims worth Rs 620 crore have already been settled, leaving Rs 3,372 crore.
He rejected reports suggesting that he received a 99.97 per cent haircut on debt worth around Rs 22,000 crore through insolvency proceedings before the National Company Law Tribunal (NCLT), arguing that this figure should not be treated as his personal outstanding debt.
“I have to state that certain vested media houses are spreading wrong information about my personal insolvency matter in the NCLT,” Subhash Chandra said, urging media platforms to publish what he described as the complete facts.
The borrowing entities have also offered to pay around Rs 1,113 crore to multiple objecting lenders, he said, adding that discussions are continuing.
Subhash Chandra said the total outstanding borrowings of the companies for which he had provided personal guarantees stood at around Rs 45,000 crore on January 24, 2019. Since then, the borrowing entities have repaid close to Rs 43,000 crore, according to his statement.
He added that the companies have assured stakeholders that they will settle any other amounts that may remain outstanding.
The repayment plan was approved by 80.8 per cent of creditors when it was put to a vote by the resolution professional, he said, arguing that the Rs 22,000 crore figure being highlighted in reports does not represent the amount ultimately payable by him after taking into account repayments and settlements by the underlying borrowers.
He also said another group of lenders had filed claims of Rs 16,386 crore, of which Rs 16,201 crore were admitted, and that the borrowing entities were in the process of settling these amounts.
Subhash Chandra also disputed claims that his net worth stood at Rs 45,888 crore in 2017. He said his assets were declared at Rs 39.08 crore in the Parliament in 2016.
According to him, his net worth stood at Rs 31.79 crore in 2024, including a residential property worth around Rs 25 crore.
Subhash Chandra said the judge’s opinion still needs to be converted into a formal order and that the matter remains technically pending before the NCLT. His clarification comes as lenders, including HDFC Bank, explore challenging the repayment plan before the National Company Law Appellate Tribunal (NCLAT).
–IANS