Zee Group founder Subhash Chandra on Sunday issued a fresh clarification on his personal insolvency proceedings, saying borrowers linked to his personal guarantees have assured him they will settle the remaining Rs 4,262 crore claimed by lenders, subject to reconciliation of accounts.
The statement comes amid social media posts around the National Company Law Tribunal (NCLT) settlement, including the hashtag #PaiseVapasKaro. Chandra said there has been a “wrong perception and understanding” of the matter, providing a detailed account of the claims.
A key clarification in the statement is that Chandra says his personal borrowing was zero, while he had signed personal guarantees totalling Rs 22,000 crore. Of this, Rs 17,200 crore in guarantees were signed when the borrowers originally raised the funds, while another Rs 4,800 crore were signed after defaults had occurred.
Asset Valuations
The statement says the Resolution Professional (RP), appointed by the NCLT, prepared the repayment plan after examining Chandra’s assets and available funds. It notes that his assets declared in Parliament in 2016 were valued at Rs 39.08 crore and subsequently reduced to Rs 31.79 crore, including a residential house valued at Rs 25 crore that was also mortgaged. This left liquid assets of Rs 6.79 crore, he said.
The statement also provides a lender-wise breakdown of the claims. Borrowers, he said, had received Rs 4,808 crore across the listed lenders and had already repaid Rs 3,803 crore, leaving a balance of Rs 998 crore. However, claims filed against the personal guarantor amounted to Rs 5,311 crore. After Rs 1,049 crore in claims were settled or paid, the balance stood at Rs 4,262 crore.
Chandra clarified the Rs 4,262-crore figure differs from the approximately Rs 3,992 crore cited earlier because some accounts were not included as they had neither voted for nor against the repayment plan.
Beyond the listed lenders, Chandra said there were “substantial borrowing” from foreign funds, domestic funds, NBFCs and corporates. According to the statement, most of these obligations were either settled or are being settled by the borrowers, while the remaining obligations had adequate assets against them or were expected to be paid.
The lender-wise data also highlights the differences between amounts disbursed, repayments made and claims against Chandra as personal guarantor. For instance, the statement says India Bulls Housing Finance had disbursed Rs 726 crore, while borrowers had paid back Rs 771 crore, with a Rs 429-crore claim against the personal guarantor subsequently settled. Axis Bank Group had disbursed Rs 388 crore and received Rs 157 crore, while a Rs 620-crore claim was settled, with any remaining payment from the settlement still in process.
Lender-Wise Claim Breakdowns
For other lenders, the statement raises questions around available securities and the treatment of claims. It says HDFC Group’s Rs 775-crore claim was without a valid personal guarantee; Canara Bank’s Rs 348-crore claim related to borrowing against assets in the US; and Edelweiss had more than Rs 500 crore of security available at the time of default, with the matter also pending before the DRT.
The statement similarly says securities were available in cases involving Franklin Templeton and IndusInd Bank, while LIC Housing Finance had been offered a settlement and part security was available. It also says RBL Bank had been offered payment by the borrower but refused it, while Union Bank had security available.