NCLT Allows Zee's Subhash Chandra to Repay Just Rs 6.5 Crore Against Rs 22,006-Crore Dues

New Delhi: The National Company Law Tribunal (NCLT) has cleared the way for Zee Group founder Subhash Chandra to settle claims worth over Rs 22,006.57 crore for a mere Rs 6.5 crore, a recovery rate of roughly 0.03% of what creditors were owed.

The order came from a third judicial member Nilesh Sharma of the insolvency bench, deciding on a repayment proposal filed in connection with a personal insolvency case brought by Indiabulls Housing Finance. Chandra was a personal guarantor for loans extended to Essel Group entities.

Notably, creditors had staked claims totalling Rs 22,006.57 crore against Chandra. However, only Rs 6.5 crore was offered based on his declared personal assets and estate and Rs 25 lakh towards process costs, which means a haircut of nearly 99.97% for lenders.

Sharma reportedly rejected objections led by LIC Housing Finance, which called the proposed payout "unviable and unlawful".

"In the case of LICHFL, whose admitted claim stood at Rs 1,322.39 crore, the proposed repayment was merely Rs 38,09,294, amounting to approximately 0.028 per cent of its admitted dues. It was contended that such a negligible repayment could not receive the approval of this tribunal," the NCLT order mentioned.

The tribunal gave its approval after creditors representing 80.814% of the voting share supported the plan, and the Resolution Professional determined that this sum reflected the true recoverable value from the guarantor's disclosed holdings, as per reports.

The amount will also be redistributed among the remaining eligible creditors, as laid out under the approved plan after the Original Division Bench issues a formal order reflecting the majority view.

The insolvency case traces back to 2022, when Indiabulls Housing Finance moved against Chandra over a Rs 170-crore loan extended to Vivek Infracon, a loan he had personally guaranteed, and one that eventually turned bad.

Reacting to the development, businessman Vijay Mallya wrote on X, "If true many congratulations to my friend Subhash. Banks and government have admitted having recovered Rs 14,100 crores from me against a Judgement debt of Rs 6203 crores. Many more borrowers have settled at a fraction. Indian Debt Resolution Justice I presume. No media questions."

If True many congratulations to my friend Subhash.Banks and Government have admitted having recovered Rs 14,100 crores from me against a Judgement debt of Rs 6203 crores. Many more borrowers have settled at a fraction. Indian Debt Resolution Justice I presume. No media questions. pic.twitter.com/5uwxYSAX8H

— Vijay Mallya (@TheVijayMallya) August 26, 2026

Congress MP Jairam Ramesh slammed the NCLT ruling calling it "a mundan (tonsure)" and not just "haircut".

"In finance terminology, when creditors are owed money and the debtor repays only part of it, the difference expressed as a percentage is called a haircut. The National Company Law Tribunal has just approved a repayment plan of a noted businessman under which creditors will receive only Rs 6.5 crores against admitted claims of around Rs 22,006.57 crore. This is not just a haircut. It is actually a mundan and makes a complete mockery of the Insolvency and Bankruptcy Code, 2016," Ramesh said.

In finance terminology, when creditors are owed money and the debtor repays only part of it, the difference expressed as a percentage is called a haircut.

The National Company Law Tribunal has just approved a repayment plan of a noted businessman under which creditors will…

— Jairam Ramesh (@Jairam_Ramesh) August 27, 2026

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