NCLT Suspends Subhash Chandra’s Controversial Rs 6.2 Crore Repayment Proposal

A five-member bench of the National Company Law Tribunal (NCLT) has put a hold on a repayment plan proposed by media mogul Subhash Chandra, which would have allowed him to settle Rs 6.2 crore with his creditors, despite facing admitted claims totaling approximately Rs 22,006 crore in his ongoing personal insolvency resolution process.

The NCLT, which serves as a quasi-judicial body addressing corporate insolvency and company law disputes, initially approved Chandra’s repayment plan on August 25. This approval would have resulted in a staggering haircut of nearly 99.9%, a term used in finance to describe the percentage of a loan that is written off when a debtor is unable to repay the full amount owed.

Chandra’s financial troubles date back to 2022 when he became embroiled in insolvency proceedings initiated by Indiabulls Housing Finance Limited, now rebranded as Sammaan Capital. The proceedings were triggered after Chandra acted as a personal guarantor for a Rs 170 crore loan extended to Vivek Infracon, a firm that subsequently defaulted on its obligations. Following the default, Indiabulls sought intervention from the NCLT under Section 95 of the Insolvency and Bankruptcy Code, successfully admitting the plea in 2024.

Beyond his financial dilemmas, Chandra also has a notable political background; he served as a Rajya Sabha MP between 2016 and 2022, having been elected as an Independent candidate backed by the Bharatiya Janata Party (BJP). His active role in the media industry and political landscape has made him a prominent figure, but the recent developments regarding his insolvency have raised significant concerns among stakeholders and creditors alike.

The suspension of the repayment proposal by the NCLT indicates the tribunal’s intent to scrutinize the situation further, given the disproportionate nature of the proposed settlement compared to the amount owed. As this case unfolds, it is expected to attract considerable attention, particularly from those interested in corporate governance and financial accountability.

Source: scroll.in