PSU Lenders To Challenge NCLT Order, Oppose Subhash Chandra’s ₹6.5-Crore Repayment Plan
New Delhi: Public sector lenders LIC Housing Finance, Canara Bank and Union Bank of India will challenge the National Company Law Tribunal’s (NCLT) approval of Essel Group Chairman Subhash Chandra’s repayment plan in his personal insolvency case. The three lenders, which together held an 8.45 per cent voting share in the insolvency proceedings, had opposed and voted against the repayment…
Three public sector lenders, LIC Housing Finance, Canara Bank, and Union Bank of India, are set to contest the National Company Law Tribunal's (NCLT) endorsement of a repayment plan proposed by Essel Group Chairman Subhash Chandra in his personal insolvency case. These lenders, collectively holding an 8.45 percent voting share in the insolvency proceedings, opposed and voted against Chandra's plan.
The housing financier, LIC Housing Finance, stated that the repayment plan was approved following the approval of other financial creditors, who collectively hold an 80.81 percent voting share. Canara Bank, holding a 1.60 percent voting share, also objected to Chandra's repayment proposal and intends to challenge the tribunal's decision before the National Company Law Appellate Tribunal (NCLAT).
Union Bank of India, which held a 0.76 percent voting share, rejected the repayment plan alongside other public sector entities and also opposed the proposal before the NCLT. Despite its minority voting share, the lender was unable to secure approval for a forensic audit during the proceedings. Subhash Chandra plans to invest in startups following the NCLT's approval of his ₹6.5-crore repayment plan, which was approved under the tribunal's order to settle admitted creditor claims exceeding ₹22,000 crore.
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