Essel Group founder Dr. Subhash Chandra has publicly clarified the actual value of personal insolvency claims against him before the National Company Law Tribunal (NCLT), asserting the amount is significantly lower than widely reported figures. In a statement issued on Thursday, Chandra stated that the claims from lenders who objected to his repayment plan total ₹3,992 crore, not the ₹22,000 crore cited by some media outlets.
Chandra Denies Direct Borrowing, Cites Guarantor Role
Chandra strongly emphasized that he has never directly borrowed money from any lender. His involvement in the insolvency proceedings stems solely from his capacity as a personal guarantor for loans taken by various Essel Group entities. He criticized certain media houses for disseminating "wrong information" and urged them to present accurate facts derived from the court order.
According to Chandra, the much-reported ₹22,006 crore figure represents the total claims initially filed against him during the insolvency proceedings, with ₹21,696 crore admitted by the resolution professional. However, he clarified that these numbers do not reflect the current status or the actual amount disputed by objecting creditors.
Repayment Plan and Settled Amounts
Out of the ₹3,992 crore in claims from objecting lenders, Chandra noted that ₹620 crore has already been settled. Furthermore, the borrowing entities have offered to pay additional amounts to lenders in this category. His proposed repayment plan, which is based on his available assets amounting to ₹6.5 crore, was approved by a substantial 80.814% of creditors when put to vote. Despite this approval, a group of financial creditors subsequently challenged the plan before the NCLT.
Chandra also highlighted that companies for which he provided personal guarantees had repaid approximately ₹43,000 crore against outstanding borrowings of nearly ₹45,000 crore as of January 24, 2019. He assured that any remaining outstanding amounts would be settled by the borrowing entities.
Disputed Net Worth and Pending Order
Addressing reports concerning his personal net worth, Chandra disputed a lender's claim of ₹45,888 crore in 2017, explaining that this figure was derived from the market capitalization of Essel Group companies. He contrasted this with his declared assets of ₹39.08 crore in 2016 and ₹31.79 crore in 2024. Chandra described the recent media coverage as "selective reporting," accusing outlets of sensationalizing the matter by focusing on specific portions of the proceedings.
He further pointed out that the NCLT judge's opinion has not yet been converted into a formal order, meaning the matter is still technically pending in court. This ongoing legal process underscores the fluid nature of the claims and counterclaims involved.