NCLAT pauses lenders' appeals over Subhash Chandra debt cut
Big news in the finance world: The National Company Law Appellate Tribunal (NCLAT) has hit pause on appeals from lenders who were upset about a ruling that massively reduced Essel Group founder Subhash Chandra's debt, from ₹22,006.57 crore down to just ₹6.25 crore.
Creditors like LIC Housing Finance and Union Bank of India aren't happy, but for now, their appeals are pending until the next hearing in early October.
Lenders decry 0.028% recovery rate
Lenders feel shortchanged because the new repayment plan offers only a tiny 0.028% recovery rate: LIC Housing Finance would get just ₹38.09 lakh out of ₹1,322.39 crore claimed.
They're also questioning how Chandra's net worth reportedly dropped from around ₹45,888 crore in 2017 to about ₹31.79 crore now.
Legal arguments are still flying, and the tribunal will revisit everything next month.