Congress leader Rahul Gandhi has criticised the Narendra Modi government over the National Company Law Tribunal’s (NCLT) approval of a repayment plan involving Zee Group founder Subhash Chandra, alleging that the decision reflects a financial system that treats ordinary citizens and influential individuals differently.
Reacting to the news that Chandra’s creditors will receive only around ₹6.5 crore against admitted claims of approximately ₹22,006.57 crore, Gandhi said the episode illustrated what he described as a “two-system” model in the country.
In a post on X on Thursday, Gandhi contrasted the treatment of farmers and salaried borrowers with that of wealthy individuals. He argued that farmers risk losing their land over relatively small unpaid dues, while salaried people can face recovery action after missing even a single loan instalment.
He further alleged that ordinary families struggle to afford quality education while “select friends” of the government receive much more favourable treatment from banks.
Gandhi’s remarks came after the NCLT approved a repayment proposal for Chandra under which creditors are expected to recover only a fraction of their admitted claims. The plan amounts to a reduction of roughly 99.97% in the lenders’ claims.
NCLT approves repayment plan
The repayment proposal was approved by NCLT judicial member Nilesh Sharma after an earlier difference of opinion between two members led to his appointment as the third member.
The tribunal rejected objections raised by lenders, including LIC Housing Finance, which had argued that the proposed recovery was inadequate. LIC Housing Finance had an admitted claim of nearly ₹1,322.39 crore but was offered approximately ₹38 lakh under the plan.
Some creditors also raised concerns over the proposed ₹6.5 crore payment being described as indicative rather than a fixed final amount. However, the tribunal noted that the plan had received 80.81% approval among creditors, while those opposing it accounted for less than 20% of the voting share.
The NCLT said it could not replace the commercial decision taken by creditors with its own assessment, provided the proposal complied with the Insolvency and Bankruptcy Code (IBC).
Tribunal says rejection could hurt recovery
In its 144-page order, the NCLT observed that the valuation of Chandra’s personal assets suggested they were worth considerably less than the amount offered through the repayment proposal.
The tribunal also considered the possibility that rejecting the plan and moving Chandra towards bankruptcy could result in even lower recoveries for creditors, depending on the assets available for repayment.
The approved plan will be binding on all creditors, including those who opposed it, in accordance with the IBC.
The insolvency proceedings stem from a personal guarantee provided by Chandra in connection with a ₹170-crore loan facility extended to Vivek Infracon. Indiabulls Housing Finance initiated insolvency proceedings against him in 2022. After an earlier settlement attempt failed, the proceedings resumed in 2024.
