Essel Group founder Subhash Chandra on Thursday, 27 August issued a detailed clarification pushing back against media reports that he secured a near-total waiver on personal debt worth approximately ₹22,000 crore through insolvency proceedings before the National Company Law Tribunal (NCLT). Chandra maintained that the widely cited figure represents total claims filed in the proceedings — not the amount personally owed by him — and that he was never a direct borrower from the lenders involved.

What Chandra Actually Said

In his statement, Chandra drew a clear legal distinction: he acted solely as a personal guarantor for loans taken by borrowing entities within the broader Essel Group, and did not personally borrow money from the lenders party to the NCLT proceedings. He argued this distinction fundamentally changes how the reported figures should be interpreted.

According to Chandra, total claims filed in the case amounted to ₹22,006 crore, of which ₹21,696 crore were admitted by the resolution professional. However, lenders who objected to the repayment plan held claims totalling only ₹3,992 crore. Of that, ₹620 crore has already been settled, leaving an outstanding disputed amount of ₹3,372 crore.

Repayments by Borrowing Entities

Chandra said the total outstanding borrowings of companies for which he had provided personal guarantees stood at approximately ₹45,000 crore as of 24 January 2019. Since then, he said, the underlying borrowing entities have repaid close to ₹43,000 crore — a figure he argued renders the ₹22,000 crore headline misleading.

The borrowing entities have also reportedly offered to pay around ₹1,113 crore to objecting lenders, with discussions described as ongoing. A separate group of lenders had filed claims of ₹16,386 crore, of which ₹16,201 crore were admitted; the borrowing entities are reportedly in the process of settling these amounts as well.

The Creditor Vote and NCLT Status

Chandra noted that the repayment plan was approved by 80.8 per cent of creditors when put to a vote by the resolution professional — a majority he cited as evidence of broad acceptance. He added, however, that the judge's opinion still needs to be converted into a formal order, meaning the matter remains technically pending before the NCLT.

Notably, lenders including HDFC Bank are reportedly exploring a challenge to the repayment plan before the National Company Law Appellate Tribunal (NCLAT), which could reopen the contours of the settlement.

Dispute Over Net Worth Figures

Chandra also contested claims that his net worth stood at ₹45,888 crore in 2017. He said his assets were declared at ₹39.08 crore in Parliament in 2016, and that his net worth as of 2024 stood at ₹31.79 crore, including a residential property valued at approximately ₹25 crore.

'I have to state that certain vested media houses are spreading wrong information about my personal insolvency matter in the NCLT,' Chandra said, urging media platforms to publish what he described as the complete facts.

What Happens Next

With the NCLT order yet to be formally issued and HDFC Bank reportedly weighing an NCLAT appeal, the legal proceedings around Chandra's personal guarantee insolvency remain unresolved. The companies have assured stakeholders that any remaining outstanding amounts will be settled, though the timeline and mechanism for doing so have not been publicly detailed.