NCLT approves Subhash Chandra repayment plan with massive creditor haircut

The insolvency tribunal's approval of the repayment plan marks a significant development in Subhash Chandra's personal insolvency resolution process, one of the highest-profile cases handled by the NCLT since its establishment. Under the tribunal's order, the Essel Group founder will discharge admitted creditor claims totalling approximately ₹22,006.57 crore through a payment of ₹6.5 crore, resulting in an exceptional reduction of liabilities for the billionaire.

The resolution plan was challenged by opposition parties, with Congress leaders particularly vocal in their criticism. Party representatives characterised the massive debt reduction not as a conventional financial "haircut" but as a complete erasure of obligations, drawing attention to the disparity between the settlement amount and the original liability.

The NCLT's decision follows the tribunal's examination of Chandra's assets and financial circumstances under India's Insolvency and Bankruptcy Code. The approval reflects the tribunal's assessment that the proposed repayment represents the maximum recoverable amount from the debtor's estate through the insolvency resolution framework.

Creditors holding claims against Chandra will receive approximately 0.03 per cent of their admitted dues under the approved plan. The case has drawn scrutiny from political quarters regarding the treatment of large-scale insolvency cases and the recovery rates achieved for creditors through the tribunal system.