NCLT stays repayment plan for Essel Group founder Subhash Chandra

A five-member Special Bench of the National Company Law Tribunal (NCLT) has stayed an August 25 order that approved a repayment plan for Essel Group founder Subhash Chandra in his personal insolvency proceedings. The decision requires the matter to be heard afresh.

The previous order allowed Chandra to pay ₹6.25 crore to creditors against admitted claims totaling ₹22,006.57 crore. This proposed recovery represented approximately 0.03% of the admitted claims, raising concerns regarding the significant haircut taken by creditors. The claims largely stem from guarantees provided for loans taken by Essel and Zee-linked entities.

In addition to staying the order, the Special Bench has restrained Chandra from selling, transferring, or otherwise alienating his properties, whether directly or indirectly. The next hearing is scheduled for September 23.