Subhash Chandra Says ‘My Borrowing Is Zero’ in Rs 22,000 Crore Insolvency Case

Essel Group chairman Subhash Chandra has clarified the controversy surrounding the Rs 22,000-crore figure in his personal insolvency case, saying the amount does not represent money personally borrowed by him.

In a post on X, Chandra said there had been a “wrong perception and understanding” of the issue and explained that the large figure largely relates to personal guarantees he provided for loans taken by various borrowing entities.

‘My borrowing is zero’

Chandra said he had not personally borrowed Rs 22,000 crore from banks or financial institutions.

According to his explanation, guarantees of around Rs 4,800 crore were provided when the borrowers actually received the funds. The remaining guarantees were issued after the borrowing entities had already defaulted.

“My borrowing is Rs 0,” Chandra said.

What happened to the original loans?

Chandra said the borrowing entities had received approximately Rs 4,808 crore when the loans were originally taken.

Of that amount, around Rs 3,803 crore had already been repaid, leaving an outstanding balance of approximately Rs 998 crore, according to his statement.

However, lenders subsequently filed claims of around Rs 5,311 crore in Chandra’s personal insolvency proceedings. He said approximately Rs 1,049 crore of those claims had later been settled or paid.

That left a balance of around Rs 4,262 crore, based on the figures presented by Chandra.

Why does the figure reach Rs 22,000 crore?

Chandra explained that the Rs 22,000-crore figure relates to guarantees attached to borrowings by multiple companies rather than a single personal loan.

Several borrowing entities had received funds from lenders, with Chandra providing personal guarantees against those loans. In some cases, the same lender had extended loans to multiple entities.

As a result, the claims recorded in his personal insolvency proceedings can be substantially higher than the amount of money that was actually disbursed to the borrowing companies.

NCLT resolution plan

The controversy follows an NCLT order approving a resolution plan under which Chandra would pay around Rs 6.5 crore against admitted claims of approximately Rs 22,006 crore.

Chandra has sought to distinguish the admitted claims and guarantees from the amount he personally borrowed, arguing that the figures should not be interpreted as him having personally taken Rs 22,000 crore in loans.

He has also urged lenders to work directly with the borrowing entities, reconcile their accounts and pursue recovery of the outstanding amounts.