28 Aug 2026 (Navroze Bureau) : Essel Group founder Subhash Chandra has received major relief in his personal insolvency proceedings after the National Company Law Tribunal (NCLT) approved a repayment plan requiring him to pay around ₹6.5 crore against admitted claims of more than ₹22,000 crore.
₹22,006 Crore Claims, ₹6.5 Crore Repayment
The repayment plan covers ₹22,006.57 crore in admitted personal-guarantee claims. Under the approved plan, Chandra will pay approximately ₹6.5 crore, including process-related costs.
The difference translates into an exceptionally steep haircut for creditors, with reports describing it as around 99.9%.
Banks Challenge the Resolution Plan
Several lenders, including Axis Bank and HDFC Bank, had objected to aspects of the repayment plan.
The lenders questioned the inclusion of certain associate entities in the voting process and raised concerns over claims submitted by a large number of individuals. The tribunal has ordered changes to the creditor list following these objections.
Tribunal Clears Plan After Dispute
The NCLT’s decision followed differences among members of the tribunal over the proposed resolution.
The final decision allowed the creditors’ commercial judgment to prevail after creditors holding more than 80% of voting rights backed the repayment plan.
What the Case Means for Creditors
The case has drawn attention because of the enormous gap between the admitted claims and the amount to be paid under Chandra’s personal insolvency resolution.
However, the approval of Chandra’s personal repayment plan does not automatically wipe out the underlying debts of the principal borrowing companies, which remain liable for their obligations.
Subhash Chandra Defends the Plan
Chandra has disputed the way the ₹22,000-crore figure has been presented, arguing that the headline number does not accurately reflect the claims of lenders that opposed his repayment proposal.
He has pointed to the amount actually contested by objecting lenders and said some liabilities had already been settled.
Political Controversy Erupts
The NCLT decision has also triggered a political debate.
Congress leaders have criticised the settlement, questioning whether wealthy individuals receive different treatment under India’s insolvency framework. The government, however, has disputed claims that banks have effectively suffered a 99.97% haircut on the entire debt linked to Chandra.
A Closely Watched Insolvency Case
The case is significant for India’s insolvency regime because it highlights the complexities involved when a promoter’s personal guarantee is invoked for corporate borrowing.
It also raises broader questions about creditor voting, recoveries and the balance between an individual’s insolvency resolution and the continuing liabilities of companies that borrowed the money.