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[BUSINESS] · India · 22 sources

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Subhash Chandra: NCLT stays Rs 6.25-crore repayment plan

A five-member 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. The plan proposed a settlement of approximately Rs 6.25 crore against admitted creditor claims exceeding Rs 22,000 crore, representing a nearly 99.97 percent haircut for lenders.

The tribunal, led by NCLT President Justice (retd) Anupinder Singh Grewal, decided to stay the order and rehear the matter because no clear majority opinion had emerged among the members of the previous bench. The bench has issued notices to all involved parties and directed Chandra, acting as a guarantor, to refrain from selling, transferring, or alienating his properties, either directly or indirectly, while the proceedings are pending.

The insolvency proceedings, initiated by Indiabulls Housing Finance, involve claims related to personal guarantees provided by Chandra for loans taken by Essel Group entities. While some lenders supported the settlement, major institutions including HDFC Bank, LIC Housing Finance, Canara Bank, and Union Bank of India have opposed the plan, citing the negligible recovery rate. The matter is also being heard by the National Company Law Appellate Tribunal (NCLAT).

Entities

Anupinder Singh Grewal · Essel Group · Indiabulls Housing Finance · LIC Housing Finance · National Company Law Appellate Tribunal · National Company Law Tribunal · Subhash Chandra · Zee Group

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Sources

13 days ago
13 days ago