‘Complete mockery’: Congress slams Subhash Chandra’s 0.028% NCLT settlement plan; social media reacts
Congress has criticised a repayment plan involving Zee owner Subhash Chandra, arguing that creditors may recover only a fraction of their claims.
Mumbai: Creditors have accepted claims totaling Rs 22,006.57 crore against Subhash Chandra, but the repayment plan they must accept offers only Rs 6.5 crore, which amounts to roughly three paise for every rupee claimed. If approved, creditors would be left with nearly 99.97 percent of their dues unpaid, a situation known as a haircut in insolvency cases. Before the plan can be implemented, it must receive a formal order from the National Company Law Tribunal (NCLT).
Creditors voted on Chandra's proposal in November 2024 and approved it with 80.814 percent of the voting share, surpassing the necessary majority. However, Axis Bank, Canara Bank, HDFC Bank, LIC Housing Finance, RBL Bank, and Union Bank all opposed the plan. IDBI Trusteeship also objected for the Franklin Templeton Fund, but their combined voting share was below 20 percent.
In September 2025, the original NCLT bench comprised of both judicial and technical members had differing opinions on the matter. The case was then referred to third member Nilesh Sharma, who rejected the objections related to the voting process and allegations that entities connected to Chandra had influenced the outcome. His ruling allowed the plan to move forward.
The tribunal noted that Chandra's net worth had dropped from around Rs 45,888 crore in 2017 to nearly Rs 31.79 crore. However, they stated that this comparison alone could not prove any wrongdoing, such as hidden or misappropriated assets; further evidence would be required. Additionally, it was ruled that a forensic audit was not necessary before approving the repayment plan.
The case began when Indiabulls Housing Finance, now Sammaan Capital, filed an insolvency petition over a Rs 170 crore loan guaranteed personally by Chandra. The lender filed the petition in 2022 and the NCLT admitted it in April 2024. Claims for 1,260 people, totaling an undisclosed amount, have been excluded from the repayment plan and the fate of these claims remains uncertain. The matter will be returned to the original NCLT bench for a formal order.
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