NCLT Approves Rs 6.5 Crore Settlement for Subhash Chandra Against Rs 22,006 Crore Debt

The National Company Law Tribunal (NCLT) has approved a repayment plan allowing Zee Media Group founder Subhash Chandra to settle personal guarantee dues of approximately Rs 22,006 crore by paying Rs 6.5 crore. This decision results in a haircut of more than 99 percent for the creditors. The order was passed by NCLT Member Nilesh Sharma, who acted as a third judge to resolve a split verdict between a Judicial Member and a Technical Member. The ruling followed a vote where 80.814 percent of creditors approved the offer, which subsequently bound dissenting creditors including Axis Bank, RBL Bank, IndusInd Bank, IDBI Trusteeship, LIC Housing Finance, and Union Bank of India. The proceedings began in 2022 after Indiabulls Housing Finance, now known as Sammaan Capital, filed for insolvency against Chandra over a personal guarantee for a loan given to Vivek Infracon. Some creditors challenged the validity of the vote, alleging that several supporting entities were related parties associated with Chandra. The court noted that the Resolution Professional indicated Chandra's estate might not have been sufficient to cover even the process expenses in the event of bankruptcy. Outlets with a center lean focused on the broader implications for India's insolvency mechanism. Outlets with a center left lean highlighted the controversy surrounding the related party allegations and the forced haircut for leading banks. Outlets with a left lean emphasized the political dimension, noting Chandra's former ties to the Bharatiya Janata Party and citing Congress party leader Jairam Ramesh, who called the write off a mockery of the Insolvency and Bankruptcy Code.