Essel Group founder Subhash Chandra announced on Friday that the conglomerate has repaid approximately ₹43,000 crore of its total ₹45,000 crore debt. Amidst ongoing scrutiny and "allegations and speculation" regarding his financial position, Chandra called for an independent audit of the group's debt, defaults, and repayment efforts.
He specifically urged both the banking system and Finance Minister Nirmala Sitharaman to commission an independent auditor to thoroughly examine the group's financial records.
Addressing Debt and NCLT Proceedings
Chandra directly refuted claims that a National Company Law Tribunal (NCLT) matter involved ₹22,000 crore, asserting the actual amount linked to objecting lenders stood at around ₹3,900 crore. He clarified that these proceedings primarily concern personal guarantees he had provided, rather than personal borrowings.
The Essel Group chairman explained that the company's financial difficulties first emerged on January 24, 2019, due to an asset-liability mismatch. Following this, he stated he sent an open letter to the banking system, acknowledging mistakes and committing to repay the group's obligations.
Repayment Efforts and Remaining Challenges
"I am the first person to accept that I made a mistake in the corporate world," Chandra stated. He detailed the extensive measures taken to meet repayment obligations, including selling family and personal assets, mortgaging his own house, and nearly selling Zee. "We didn’t keep anything," he emphasized.
According to Chandra, while ₹43,000 crore has been repaid, approximately ₹2,000 crore of the total loan amount remains stalled. This is attributed to persistent asset-liability issues, particularly delayed payments from state governments for infrastructure projects, and the need to sell one or two more properties.
Disputed Claims and Future Appeals
Chandra noted that some lenders, despite having been repaid, have still filed claims before the NCLT. He mentioned that around ₹620 crore in claims related to borrowing entities had already been settled, with a settlement offer of roughly ₹1,100 crore still pending with certain lenders. "As a group, we are committed to paying back the lenders," he reiterated.
In the broader insolvency matter, admitted claims reportedly totaled ₹22,006.57 crore. The NCLT recently approved a repayment plan of approximately ₹6.5 crore. However, HDFC Bank has indicated its intention to challenge this approval before the appellate tribunal, noting its admitted claim represented 3.2 percent of the total stated amount.
Personal Net Worth and Media Allegations
Chandra also addressed what he described as misrepresentations of his personal net worth. He dismissed reports from 2017 suggesting a figure of ₹35,000 crore, clarifying that his declared net worth when he became a Rajya Sabha member in 2016 was around ₹339 crore.
He further criticized "certain vested media houses" for allegedly spreading inaccurate information about his personal insolvency matter. The Mukesh Ambani-led Reliance Group, however, denied these allegations against its media entities, stating their brands have never been used for attacks.
Chandra concluded by reiterating his demand for an independent audit to definitively establish the Essel Group's initial borrowing, default amounts, and subsequent repayments.