₹22,000cr dues, ₹6.5cr payout: NCLT approves Subhash Chandra's plan
What's the story
The National Company Law Tribunal (NCLT) has approved a repayment plan by media baron Subhash Chandra in his personal insolvency resolution process. The approval means that creditors will only get ₹6.5 crore against admitted claims of ₹22,006.57 crore, a haircut of nearly 99.97%. The decision was made by Nilesh Sharma, who was appointed as the third member on the bench after an earlier split verdict on September 3, 2025.
Approval details
Repayment plan backed by over 80% of voting share
The repayment plan was approved by 80.814% of the voting share at a meeting in November 2024, well above the three-fourths threshold required under the Insolvency and Bankruptcy Code (IBC).
Creditors who opposed the plan included LIC Housing Finance, HDFC Bank, Axis Bank, Canara Bank, RBL Bank IDBI Trusteeship (Franklin Templeton Fund) and Union Bank.
However, they held less than 20% of the voting share collectively.
Binding effect
Approved plan now binds all creditors
Under Section 115 of the IBC, the approved plan now binds all creditors, including those who voted against it.
The tribunal observed that dissenting creditors were unlikely to recover more by rejecting the plan.
This was based on a resolution professional's valuation showing Chandra's estate is worth significantly less than what's on offer.
Objection dismissal
Tribunal dismisses dissenting creditors' objections
The tribunal dismissed several objections raised by dissenting creditors. It found no material violation in the process through which the repayment plan was approved.
The argument that the vote in favor of the plan had been skewed by entities allegedly associated with Chandra was also rejected, as these entities did not meet the statutory definition of "associate" under Section 79(2)(g) of the Insolvency and Bankruptcy Code (IBC).
Net worth disparity
Huge difference in Chandra's historical and current net worth
Creditors had pointed out a huge difference between Chandra's historical and current net worth.
Earlier certificates had pegged his net worth at ₹45,888 crore (2017, RBL Bank) and ₹40,562 crore (2018, Canara Bank), while the current disclosed figure is some ₹31.79 crore.
However, the tribunal held that this difference alone didn't prove concealment or diversion of assets and that appointing a forensic auditor wasn't mandatory for approving a repayment plan under the IBC.
Plan amendment
Approved plan modified to exclude certain claims
The approved plan has been modified to exclude claims filed through Anil Kumar and Sunil Jain on behalf of 1,260 individuals from the final list of creditors.
The resolution professional has been directed to redistribute the repayment amount among the remaining eligible creditors accordingly.
The case dates back to 2022 when Indiabulls Housing Finance Limited first sought insolvency proceedings against Chandra as a personal guarantor.