Rs 22,006 crore claim, Rs 6.5 crore payout: Why NCLT’s Subhash Chandra order puts lens on insolvency framework
The National Company Law Tribunal (NCLT) has handed down an order in the personal insolvency proceedings against Zee Group founder Subhash Chandra, resulting in a mere Rs 6.5 crore payout for creditors. Initially, the claim against Chandra as a personal guarantor was reported to be Rs 22,000 crore, but the objectors of the repayment plan dispute this amount, stating it to be only Rs 3,992 crore.
The tribunal's decision raises important questions about the effectiveness and fairness of the personal insolvency framework in India, particularly when dealing with claims that run into tens of thousands of crores. Subhash Chandra's office released a statement asserting that he has not borrowed any money from any lender, and that he is only a personal guarantor for the debt.
The tribunal's approval of the repayment plan, which provides only Rs 6.5 crore to creditors, has been criticized by banking sources as leaving lenders with "very little" in terms of recovery.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
