NCLT Clears Subhash Chandra Debt Plan, Creditors Take 99.97% Haircut
What Happened
NCLT approved media baron Subhash Chandra’s personal insolvency repayment plan, under which he will pay ₹6.5 crore against admitted creditor claims of ₹22,006.57 crore. The decision results in a 99.97% haircut for lenders. A third NCLT member, Justice Nilesh Sharma, broke a prior split verdict and ruled in favour of the plan despite objections from lenders including LIC Housing Finance.
Key Takeaways
The tribunal said the plan had received 80.81% creditor voting support and that Chandra’s personal estate was worth significantly less than the outstanding dues, making higher recovery unlikely. However, the decision has drawn criticism, with opponents arguing that such a steep haircut raises questions about the effectiveness and fairness of India’s Insolvency and Bankruptcy Code (IBC).