Creditors to Recover ₹6.5 Crore in Subhash Chandra Insolvency Case
· Business · The Hindu, India Today
Creditors are set to recover ₹6.5 crore from Essel Group founder Subhash Chandra following an NCLT-approved repayment plan, representing a 99.97% haircut on total claims of ₹22,006 crore. The proceedings in Mumbai stem from a personal guarantee Chandra provided for a ₹170-crore loan to Vivek Infracon Private Limited. Chandra’s office stated that he is not a borrower and clarified that the total claim against him in these specific proceedings is ₹3,992 crore. HDFC Bank and other creditors have expressed opposition to the plan and are evaluating a potential appeal. The NCLT approved the resolution plan on August 25, 2026, under the Insolvency and Bankruptcy Code.
Why it matters
The massive haircut highlights the risks for lenders when relying on personal guarantees from promoters for corporate loans.
Read the original report — The Hindu
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