Reliance Industries has vehemently denied recent allegations made by Essel Group chairman Subhash Chandra concerning its media entities, labeling the remarks as baseless. The denial, issued on August 28, 2026, and filed with India's stock exchanges, highlights Reliance's dismay over what it calls insinuations against its brands. A company spokesperson affirmed that Reliance's media operations have never been, nor will they be, used to target individuals, while maintaining high regard for Chandra as a businessman.
Dispute Over ₹22,006 Crore Insolvency Claims
This development unfolds against the backdrop of a significant legal challenge to a settlement approved by the National Company Law Tribunal (NCLT) in Chandra’s personal insolvency proceedings. The NCLT's order allows Chandra to contribute ₹6.25 crore from his personal assets to settle admitted claims totaling ₹22,006 crore. This has led to widespread reports suggesting a drastic 99.97% haircut for lenders.
However, government sources have clarified that interpreting the ₹22,006 crore figure as a direct loss is misleading. They explain that this sum represents claims against Chandra in his capacity as a personal guarantor for various loans, rather than money he personally borrowed. The insolvency proceedings were initially triggered after a loan taken by Vivek Infracon from Indiabulls, for which Chandra provided a personal guarantee, defaulted.
NCLT Settlement and Lenders' Opposition
The NCLT's Delhi bench approved the settlement under Section 114 of the Insolvency and Bankruptcy Code, after the matter was referred to a judicial member following an initial split verdict. The tribunal based its decision on an assessment by the Resolution Professional, which indicated that Chandra's personal assets were considerably lower than the claimed amount. The NCLT concluded that forcing him into bankruptcy could result in even lower recovery rates for creditors.
Under the approved plan, while Chandra contributes ₹6.25 crore, an additional ₹1,494 crore is anticipated from the corporate borrowers. The resolution plan garnered support from creditors representing 80.81% of the voting share.
Despite this, several prominent lenders, including LIC Housing Finance and HDFC Bank, have voiced strong opposition, deeming the settlement unviable and unlawful. Other dissenting banks include Axis Bank, Canara Bank, RBL Bank, and Union Bank. Creditors have also raised concerns over the significant decline in Chandra’s declared net worth, which reportedly fell from ₹45,888 crore in 2017 to approximately ₹31.79 crore currently.
Reports indicate that LIC Housing Finance and HDFC Bank intend to challenge the NCLT order before the National Company Law Appellate Tribunal (NCLAT), signaling a continued legal battle over the substantial claims.