New Delhi5 minutes ago
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Reliance has issued a statement calling the allegations of misuse of media platforms by Essel Group Chairman Subhash Chandra as false.
Subhash Chandra had alleged that fake news was being planted by Reliance making false allegations against him.
In response, the Reliance spokesperson said that it was disappointed by the allegations. His media business has not been used to attack anyone and will not be used in the future. She respects Subhash Chandra.
Media reports regarding the bankruptcy case had claimed that lending banks are facing a loss (haircut) of 99.97% on claims worth more than ₹22,000 crore.
Subhash Chandra and ₹22,006 crore dispute
- Reason for dispute: NCLT has approved a settlement in the bankruptcy case of Subhash Chandra. Under this, against the total claims of ₹22,006 crore, Chandra will have to pay only ₹6.25 crore from his personal assets.
- 99.97% loss claim: Due to receiving only ₹6.25 crore in return of such a huge amount, media reports said that the banks had to suffer a loss of 99.97%.
- Government’s argument: Government sources say that the talk of banks’ losses is not completely true. This loan of ₹22,006 crore was not taken by Subhash Chandra for himself, rather he had only signed as a ‘personal guarantor’ for the loans of other companies.
- Beginning of the case: The controversy started when a company named ‘Vivek Infracon’ took a loan from Indiabulls and defaulted (did not repay the loan). For this, Subhash Chandra had given a personal guarantee, due to which this case was filed against him.
What approval has NCLT given in the settlement?
Earlier, separate decisions of two judges had come on this matter in Delhi Bench’s NCLT, after which it was sent to judicial member Nilesh Sharma. He approved the deal under Section 114 of the Insolvency and Bankruptcy Code (IBC).
The Tribunal accepted as correct the report of the Investigating Officer (Resolution Professional) which stated that Subhash Chandra had very little personal assets left with him as compared to the amount claimed.
The court also believed that if Chandra is forcibly declared bankrupt, the recovery the banks would get could be even less.
For this reason, this agreement was approved, under which Subhash Chandra will pay ₹ 6.25 crore from his own pocket, while the borrower companies are expected to get about ₹ 1,494 crore. This entire plan has the support of creditors with 80.81% voting share.
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Read this news also…
₹22,000 crore loan settled for just ₹6.5 crore: NCLT approves Subhash Chandra’s repayment plan; Mallya said – double attitude
NCLT has approved the plan of Zee Group founder Subhash Chandra to settle the loan of ₹ 22 thousand crore for just ₹ 6.5 crore. Due to this, the lending banks and financial institutions will have to bear the loss of 99.97% of their outstanding money.
On the relief Chandra got from NCLT, fugitive businessman Vijay Mallya called it a double attitude. Mallya posted on X and said that this is a real mockery of Indian justice. Read the full news…
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