Subhash Chandra’s Rs 22,006 crore insolvency claims settled with Rs 6.5 crore payout

Subhash Chandra’s personal insolvency case has reached a critical inflection point, with the National Company Law Tribunal (NCLT) approving a Rs 6.5‑crore repayment plan against Rs 22,006.57‑crore in admitted guarantor claims. The plan, cleared under the Insolvency and Bankruptcy Code, provides for Rs 6.25 crore to be distributed among creditors, with Rs 25 lakh earmarked for process and administrative costs. For lenders, this translates into a recovery of roughly 0.03% and a haircut of about 99.97% on the admitted claims.

The liabilities arise from personal guarantees issued by Chandra in connection with various Essel Group borrowings, consolidated into a single personal insolvency proceeding. By endorsing the plan, the tribunal has effectively drawn a line under this specific guarantor dispute, giving creditors a defined, court‑sanctioned payout instead of extended litigation with uncertain recovery prospects. The resolution professional evaluated the proposal and placed it before the creditor body and the bench, which ultimately accepted the structured settlement.

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