Zee and Essel Group founder Subhash Chandra has become the centre of a major financial controversy after a repayment plan proposed payment of only ₹6.25 crore against admitted creditor claims of approximately ₹22,006.57 crore in his personal insolvency proceedings. The massive difference between the admitted claims and proposed payment attracted widespread attention, with the effective recovery under the plan being extremely small. However, the case relates to Chandra’s liabilities as a personal guarantor for corporate borrowings and should not simply be described as banks writing off the entire ₹22,000 crore loan. Creditors may still have recovery rights against the original borrowing companies and their assets.
The repayment plan had earlier received support from creditors representing more than 80% of the votes cast and was subsequently approved through the insolvency process. At the same time, some major lenders opposed the proposal, questioning the unusually low recovery and raising concerns about whether creditors’ interests were adequately protected. The case consequently triggered a wider debate over personal guarantees, corporate borrowing, insolvency rules and the large “haircuts” sometimes seen during debt-resolution proceedings. Chandra has maintained that his personal liabilities and the liabilities of the borrowing companies should not be treated as identical.
The situation changed significantly on September 1, 2026, when a five-member special bench of the National Company Law Tribunal stayed the earlier order approving the ₹6.25 crore repayment plan. The tribunal also restrained Chandra from selling, transferring or otherwise disposing of his properties while the matter remains under consideration. Therefore, claims that ₹22,006 crore has already been permanently “written off for ₹6.25 crore” are premature. The final financial and legal outcome will depend on further proceedings before the insolvency tribunals.
