Essel Group's Subhash Chandra refutes insolvency reports, stating he was a personal guarantor, not a borrower. He clarifies that of the Rs 22,006 crore in claims, only Rs 3,372 crore from objecting lenders remains outstanding.

Essel group chairman, Subhash Chandra on Thursday said reports surrounding his personal insolvency proceedings before the National Company Law Tribunal (NCLT) have presented an incorrect picture of the claims against him, stressing that he was only a personal guarantor and had not personally borrowed money from any lender.

Clarification on Claim Amounts

In a statement issued from his office, the Chairman of Essel group, which owns Zee Media, said the total claims in the insolvency proceedings should not be equated with the current amount outstanding. He said while claims filed in the proceedings totalled about Rs 22,006 crore, of which Rs 21,696 crore were admitted, the claims of lenders that have objected to his repayment plan stood at Rs 3,992 crore. Of this, Rs 620 crore has already been settled, leaving Rs 3,372 crore, he said.

"I have to state that certain vested media houses are spreading wrong information about my personal insolvency matter in NCLT," Chandra said, urging media platforms to publish the facts and remove what he described as misinformation arising from interpretations of the court order.

Background of the Guarantees

Giving the background, Chandra said the proceedings relate to personal guarantees provided to lenders of companies that were associated with the Essel Group, and not loans personally borrowed by him. He said most of the guarantees were signed after January 24, 2019, when the group defaulted in the financial system, with borrowing entities having assured him that they would repay the loans.

"The borrowing entities for whom I have provided Personal Guarantees have till date repaid Rs. 43000 Crores," he said, adding that the companies have also assured lenders that they would settle any remaining amounts.

NCLT Approves Repayment Plan

The statement comes after an NCLT order in the long-running insolvency matter, which followed a difference of opinion between two members of the tribunal and was referred to a Third Member. The Third Member held that the repayment plan met the requirements for approval under Section 114 of the Insolvency and Bankruptcy Code and that the creditors' objections did not establish sufficient grounds for rejection.

Details of the Approved Plan

Chandra also defended the Rs 6.5-crore repayment plan, saying his personal assets stood at Rs 31.79 crore in 2024, including a residential property worth around Rs 25 crore. The NCLT, while approving the plan, directed that two individuals be removed from the creditor list and their allocated amount redistributed among eligible creditors. It also held that dissenting creditors covered by the plan would be bound by it. (ANI)

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