Congress Criticizes NCLT Approval of Subhash Chandra's Repayment Plan
· India · The Hindu, India Today, Telegraph India
The Congress party has criticized the National Company Law Tribunal (NCLT) for approving a repayment plan that allows media baron Subhash Chandra to settle ₹22,006 crore in claims for ₹6.5 crore. Congress MP Jairam Ramesh described the settlement as a 'mundan' rather than a standard haircut, arguing it makes a mockery of the Insolvency and Bankruptcy Code, 2016. The NCLT approved the plan after a split verdict between two members necessitated the appointment of a third member, Nilesh Sharma. Dissenting lenders, including LIC Housing Finance, had argued the payout was unviable and unlawful.
Why it matters
The approval of this settlement raises concerns about the efficacy of the insolvency process and the recovery prospects for creditors in high-value personal insolvency cases.
Read the original report — The Hindu
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