Creditors Face Three-Paise Recovery Per ₹100, Subhash Chandra’s Repayment Plan Nears NCLT Approval

Mumbai: Creditors had accepted claims worth Rs 22,006.57 crore against Subhash Chandra. However, his repayment plan offers only Rs 6.5 crore, including Rs 25 lakh towards insolvency costs.

This means creditors may recover about three paise for every Rs 100 claimed. Nearly 99.97 percent of their dues may remain unpaid, called a haircut in insolvency cases.

The plan needs a formal NCLT order.

How Was The Plan Approved?

Creditors voted on Chandra’s proposal in November 2024. It secured 80.814 percent of the voting share, crossing the required majority.

Axis Bank, Canara Bank, HDFC Bank, LIC Housing Finance, RBL Bank and Union Bank opposed it. IDBI Trusteeship also objected for Franklin Templeton Fund. However, their combined voting share was below 20 percent.

Why Did NCLT Members Disagree?

In September 2025, the judicial and technical members of the original NCLT bench delivered differing opinions. The matter was then referred to third member Nilesh Sharma.

Sharma rejected objections concerning the voting process and allegations that entities linked to Chandra had influenced the result. His ruling resolved the disagreement and opened the way for approval.

Net Worth And Audit Questions

The tribunal noted that Chandra’s net worth had fallen from around Rs 45,888 crore in 2017 to nearly Rs 31.79 crore.

However, it said this comparison alone could not prove that assets were hidden or diverted. Evidence would be needed.

NCLT also ruled that a forensic audit was not compulsory before approving the repayment plan.

How Did The Case Begin?

Indiabulls Housing Finance, now Sammaan Capital, initiated the case over a Rs 170 crore loan to Vivek Infracon that Chandra had personally guaranteed.

The lender filed the insolvency petition in 2022, and NCLT admitted it in April 2024.

Claims filed by Anil Kumar and Sunil Jain for 1,260 people have been excluded from this plan. Their total value and future treatment remain unclear.

The matter will now return to the original bench for its formal order.