Subhash Chandra Defends Insolvency Plan, Says Essel Repaid Rs 43,000 Crore

Essel Group chairman Subhash Chandra has defended his personal insolvency proceedings, saying the group has repaid around Rs 43,000 crore of the nearly Rs 45,000 crore it owed after its financial crisis in 2019.

In a video message, Chandra said he and his family sold personal assets, including their home, to meet the group's repayment obligations. He also disputed reports that he personally owed around Rs 22,000 crore, arguing that the figure related to personal guarantees he had provided for loans taken by companies associated with the Essel Group.

His comments came days after the National Company Law Tribunal (NCLT) approved a resolution plan under which Chandra would pay around Rs 6.5 crore against admitted claims of approximately Rs 22,006 crore. The plan has faced criticism from lenders because the proposed recovery amounts to only around 0.03% of the admitted claims.

CHANDRA SAYS ESSel GROUP REPAID RS 43,000 CRORE

Chandra said the group's financial crisis emerged on January 24, 2019, following an asset-liability mismatch. He said he acknowledged his mistakes publicly at the time and subsequently worked to repay the group's financial obligations.

According to Chandra, the group had liabilities of around Rs 45,000 crore when the crisis began, of which approximately Rs 43,000 crore has since been repaid.

He said his family sold assets, including their home, to meet repayment obligations.

Chandra said around Rs 2,000 crore remains associated with companies where asset-liability mismatches have delayed repayment.

He also described his current financial position as dramatically different from the wealth attributed to him during Essel Group's peak. According to him, he now has around Rs 6.5 crore and a small residential property, part of which is rented out to cover his expenses.

WHY CHANDRA DISPUTES RS 22,006-CRORE CLAIM

Chandra has challenged the way the Rs 22,006-crore figure has been presented in reports about his insolvency case.

He said the amount represents claims filed against him in proceedings arising from personal guarantees provided to lenders for loans taken by group-linked companies. He maintained that he did not personally borrow Rs 22,000 crore from banks and financial institutions.

Chandra separately put the claims of lenders opposing the resolution plan at around Rs 3,900 crore. He said approximately Rs 620 crore had already been settled, while borrowing companies had offered around Rs 1,100 crore to lenders.

The distinction is important because the NCLT proceedings concern Chandra's obligations as a personal guarantor, while the underlying loans were taken by companies associated with the Essel Group.

The tribunal's approved resolution plan requires Chandra to pay approximately Rs 6.5 crore against admitted claims of Rs 22,006 crore. HDFC Bank has indicated that it is considering challenging the NCLT order before the appellate tribunal.

CHANDRA CALLS FOR INDEPENDENT AUDIT

Chandra has called for an independent audit of the group's borrowings, repayments and outstanding liabilities to resolve the dispute.

He appealed to the banking system, the Finance Ministry and senior banking officials to appoint an independent auditor to examine the group's financial records.

According to Chandra, an independent review would establish how much the group had borrowed when the crisis began and how much it has repaid since then.

He also rejected comparisons with businessmen accused of misusing the financial system, saying he had acknowledged his mistakes and worked towards repaying the group's obligations.

Chandra disputed reports that he personally had a net worth of around Rs 45,000 crore at the height of the Essel Group. He said that figure was based on the market value of group companies and had incorrectly been portrayed as his personal wealth.

His office has previously said that his total assets stood at Rs 31.79 crore in 2024, including a residential property valued at around Rs 25 crore. It also said he had declared assets worth Rs 39.08 crore in 2016 when he became a Rajya Sabha member.

Chandra questioned how his personal wealth could have risen from approximately Rs 39 crore in 2016 to Rs 45,000 crore a year later.

'I WILL EARN AGAIN'

Despite the collapse of much of his business empire, Chandra said he intends to rebuild his career.

He said he was considering working with a friend in Switzerland who is involved in investments. He also said he was considering borrowing Rs 2-4 crore from family members to invest in startups and other ventures.

Chandra recalled beginning his entrepreneurial journey with Rs 17 and said his businesses had provided employment to around 8,000 families. He also highlighted the interest payments made to the financial system over several decades.

His personal insolvency proceedings have been pending since 2022. The NCLT-approved resolution plan addresses his liabilities as a personal guarantor but does not extinguish the underlying obligations of the borrowing companies.

Chandra has urged people to verify claims about his finances and insolvency case circulating on WhatsApp and social media before accepting them as fact.