LIC Housing Flags Rs 1,322 Cr Exposure In Subhash Chandra Loan Accounts, Eyes Appeal
· Business · Indian Express, India Today
LIC Housing Finance (LICHFL) has disclosed an admitted claim of Rs 1,322.39 crore in the insolvency proceedings against Essel Group founder Subhash Chandra, where he is the personal guarantor on two loan accounts. Under the repayment plan approved by the NCLT, LICHFL stands to recover just Rs 38.09 lakh — a near-total write-off on the admitted amount. The NCLT has cleared Chandra's proposal to pay Rs 6.25 crore against personal guarantees totalling Rs 22,000 crore, with the consolidated personal insolvency claim placed at Rs 3,992 crore by objectors. LICHFL said it is reviewing the order and is exploring an appeal, mirroring the stance taken by HDFC Bank a day earlier. The lender stressed that it retains all security interests over the mortgaged assets and that the NCLT ruling on Chandra's personal guarantees does not dilute the corporate liabilities of the principal Essel Group borrowers.
Why it matters
A near-total haircut on a Rs 1,322 crore claim signals the scale of recovery pain for Indian banks and housing financiers caught in Essel Group's long-running debt collapse, and any successful appeal by LICHFL or HDFC Bank could reset the precedent for how personal guarantees are enforced in IBC proceedings.
Read the original report — Indian Express
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