Essel Group Chairman Subhash Chandra has unveiled his next career move, stating he intends to collaborate with investment professionals in Switzerland. This announcement follows a significant decision by the National Company Law Tribunal (NCLT) that approved a repayment scheme for him.
Chandra's Next Chapter: Switzerland and Startups
In a recent video message, Chandra detailed his future plans, indicating a move towards investment work with associates in Switzerland. He also mentioned potentially securing a loan of ₹2-4 crore from his family to invest in promising startups. Despite a challenging period, Chandra expressed confidence in his ability to rebuild.
"Today I'm talking in a very simple way. I am not talking about a person who has lost everything. The last Rs 6.5 crore I have left with me, I will have to pay according to the plan. I have a small residential house, which I have given on rent, and I am running my expenses with that income. I have no regrets. I will earn again. I am a pioneer. I know how to do good and new things. I will continue to do so," Subhash Chandra stated.
He plans to provide more details on his Swiss venture within the next few weeks.
NCLT Approves Repayment Plan with Significant Haircut
The NCLT recently cleared a personal insolvency repayment plan for Subhash Chandra, mandating him to pay approximately ₹6.5 crore. This amount is set against creditor claims totaling ₹22,006.57 crore, resulting in a substantial 99.97% haircut for the creditors, who will recover only about 0.03% of the admitted claims.
The plan received approval from NCLT Member (Judicial) Nilesh Sharma, who acted as the third member following a split verdict by an earlier two-member bench. The order explicitly rejected objections raised by several dissenting creditors, including LIC Housing Finance, HDFC Bank, Axis Bank, Canara Bank, RBL Bank, and Union Bank. LIC Housing Finance, for instance, had an admitted claim of ₹1,322.39 crore but was offered only ₹38.09 lakh.
Despite these objections, the repayment plan garnered 80.81% voting support from creditors. The NCLT noted that Chandra's personal estate was significantly less than the amount proposed under the plan and suggested that creditors might recover more from the principal corporate borrowers if Chandra's personal insolvency case was resolved. Once approved, such a repayment plan becomes binding on all creditors, irrespective of their vote.
Clarifying the ₹22,006 Crore Figure
Both government sources and Subhash Chandra's office have sought to clarify the widely reported ₹22,006 crore figure. They emphasized that this amount represents claims admitted against Chandra in his capacity as a personal guarantor, rather than direct loans personally borrowed by him. Only about ₹2,574 crore of the admitted claims involved loans where his personal guarantee was initially provided.
Chandra's current disclosed net worth stands at approximately ₹31.79 crore, which includes a residential house valued at around ₹25 crore. He clarified that previous figures of his net worth, such as ₹45,888 crore in 2017, were based on the market capitalization of Essel Group entities and not his personal wealth. He also stated that borrowing companies had repaid roughly ₹43,000 crore out of an outstanding debt of about ₹45,000 crore as of January 2019.
Order's "Technically Pending" Status
Chandra also noted that the judge's opinion on the matter had yet to be formally converted into an order, suggesting the case remains "technically pending" in the NCLT court.