Dissenting lenders have raised serious objections to the approval of Subhash Chandra’s personal insolvency resolution plan, alleging that five entities connected with his family exercised significant influence over the voting process, according to a report by Business Standard.
According to the lenders, the five entities collectively held 61.78% of the voting share and played a crucial role in securing the plan’s approval.
They argued that the entities qualified as associates or related parties under the Insolvency and Bankruptcy Code and therefore should not have been allowed to vote.
The plan received 80.81% approval from the committee of creditors, according to a 144-page order issued by the National Company Law Tribunal (NCLT).
Lenders Question Voting Rights
The five entities named in the dispute are Veena Investments, Direct Media Distribution Ventures, World Crest Advisors LLP, Lemonade Capital Advisors LLP and Corpcall Capital Advisers LLP.
Dissenting lenders, including HDFC Bank and IDBI Trusteeship Services, representing funds linked to Edelweiss and Franklin Templeton, have questioned whether votes from these entities should have been included while determining the plan’s approval.
HDFC Bank, which represents 3.2% of the total claim amount, has indicated that it is evaluating an appeal. Canara Bank has also said it is moving to challenge the NCLT decision before the National Company Law Appellate Tribunal (NCLAT).
Chandra Details ₹22,000-Crore Guarantees
The dispute comes alongside Chandra’s latest statement regarding personal guarantees and creditor claims. He said he had provided personal guarantees amounting to approximately ₹22,000 crore and accepted responsibility for guarantees he had signed.
Chandra said lenders had filed claims of ₹5,311 crore against a payable amount of ₹998 crore in certain accounts. After accounting for settled or paid claims of ₹1,049 crore, he put the remaining amount at ₹4,262 crore.
The NCLT-approved plan provides only ₹6.5 crore against admitted creditor claims of around ₹22,006.57 crore, representing a recovery of roughly 0.03%.
Chandra said borrowers had assured him they would reconcile their accounts with lenders and settle outstanding amounts. He also urged lenders to engage directly with borrowers to resolve disputed claims and recover dues.
