CBI books Subhash Chandra for inflating net worth to get ₹1,000-cr in loans

New Delhi: Following the NCLT's restriction on Subhash Chandra's property dealings and stay on his bid to settle personal insolvency proceedings, the Zee Group founder queried the order's legitimacy before the NCLAT. Chandra's legal representative, Sasmit Patra, argued before an NCLAT panel comprising Justice Yogesh Khanna and technical members Barun Mitra and Ajai Das Mehrotra that the tribunal lacked authority to create a five-member special bench.

According to Patra, Section 419(5) only allows for limited scope, and the tribunal has no power under IBC or company law to assemble a five-member bench. He questioned the presence of the five-member bench and its operation. The NCLAT was deliberating appeals submitted by Union Bank of India, Canara Bank, and LIC Housing Finance against Chandra's approval of a repayment plan on August 25.

Solicitor General Tushar Mehta, representing the creditors, contended that the petition against the third member's order could be dismissed, with the option to reopen it if any respondent challenged the reference. The NCLAT bench dismissed Chandra's grievances, stating that if he had any issues, they should be addressed within the NCLT itself.