Essel Group chairman Subhash Chandra has responded to criticism surrounding his personal insolvency proceedings, claiming that the group has repaid nearly Rs 43,000 crore of the approximately Rs 45,000 crore it owed after its financial crisis in 2019.
In a video message, Chandra said he and his family sold personal assets, including their home, to fulfil the group's repayment commitments. He also challenged reports referring to around Rs 22,000 crore in claims against him before the National Company Law Tribunal (NCLT), arguing that the figure did not represent money he had personally borrowed.
His comments came days after the NCLT approved a resolution plan requiring Chandra to pay around Rs 6.5 crore against admitted claims of roughly Rs 22,006 crore. Lenders have criticised the plan because the proposed recovery amounts to only about 0.03% of the admitted claims.
Chandra said the Rs 22,000-crore figure should instead be understood in the context of his position as a personal guarantor for loans taken by companies linked to the Essel Group.
'WE SOLD OUR HOUSE, BUT PAID EVERYONE'S MONEY'
Chandra said the group's financial troubles emerged on January 24, 2019, as a result of an asset-liability mismatch. At the time, he publicly admitted to making mistakes and pledged to repay the money owed to the financial system.
"I said that I had made some mistakes," he recalled, adding that he subsequently directed the group's borrowing companies to fulfil their repayment commitments.
According to Chandra, the group had liabilities of around Rs 45,000 crore when the crisis began, of which approximately Rs 43,000 crore has since been repaid.
"We sold our family's assets, we sold our assets, we almost sold Company, we did not keep anything, we even sold our house, but we paid everyone's money," he said.
Chandra said around Rs 2,000 crore remains associated with companies where asset-liability mismatches have prevented repayments from being completed. He added that his current financial circumstances are vastly different from the wealth associated with him during the height of his career.
He said he now has approximately Rs 6.5 crore and a small residential property, part of which he rents out to cover his living expenses.
CHANDRA QUESTIONS Rs 22,000-CRORE FIGURE
Chandra also disputed how the Rs 22,006-crore figure has been described in reports about his insolvency case. He explained that the amount represented claims filed during proceedings linked to personal guarantees he had provided to lenders for loans taken by companies associated with the group.
He stressed that he had not personally borrowed Rs 22,000 crore from banks or financial institutions.
Chandra separately estimated that lenders opposing the resolution plan had claims of around Rs 3,900 crore. He said approximately Rs 620 crore had already been settled, while the borrowing companies had offered about Rs 1,100 crore to lenders.
The distinction is important because the NCLT proceedings relate to Chandra's responsibilities as a personal guarantor, whereas the underlying loans were borrowed by companies linked to the Essel Group.
Under the resolution plan approved by the tribunal, Chandra will pay around Rs 6.5 crore against admitted claims of Rs 22,006 crore. The substantial difference between the claimed amount and proposed recovery has prompted criticism from lenders.
HDFC Bank has indicated that it is considering challenging the NCLT's decision before the appellate tribunal.
CHANDRA SEEKS INDEPENDENT AUDIT
Chandra said an independent audit examining the group's borrowings, repayments and remaining liabilities could help resolve the controversy.
He urged the banking system, the Finance Ministry and senior banking officials to appoint an independent auditor to review the group's financial records.
"How much was the borrowing when the group first defaulted in the financial market and how much has it paid till now? The truth will become clear," he said.
According to Chandra, such an audit would establish the group's borrowing levels when the crisis began and the amount subsequently repaid.
He also rejected comparisons between himself and businessmen accused of exploiting India's financial system, arguing that he had openly admitted his mistakes and made efforts to repay the group's debts.
"I believe that the person to whom money is owed should be paid," he said.
Chandra also disputed reports claiming that his personal wealth had reached around Rs 45,000 crore when the Essel Group was at its peak. He argued that the figure was based on the market capitalisation or valuation of group companies and had incorrectly been presented as his personal wealth.
His office has stated that his total assets were worth Rs 31.79 crore in 2024, including a residential property valued at approximately Rs 25 crore. It has also said that he had declared assets worth Rs 39.08 crore in 2016, when he became a Rajya Sabha member.
Chandra questioned how his personal wealth could have increased from around Rs 39 crore in 2016 to Rs 45,000 crore just a year later.
He called the Rs 45,000-crore personal wealth figure a "myth", saying reports had failed to distinguish between the value of the Essel Group and his own personal assets.
'I WILL EARN AGAIN'
Despite the decline of much of his business empire, Chandra said he remained determined to rebuild his career and had no regrets about his entrepreneurial journey.
"I will earn again. I am a pioneer," he said, adding that he understood how to build businesses and planned to start over.
Chandra said he was considering working with a friend in Switzerland who is involved in investments. He also said he was exploring the possibility of borrowing Rs 2-4 crore from family members to invest in startups and other ventures.
"I started with Rs 17," he said, referring to the beginning of his entrepreneurial career. He claimed that his businesses had provided employment to around 8,000 families and that he had paid significant amounts in interest to the financial system over several decades.
Chandra's personal insolvency proceedings have been ongoing since 2022. Although the NCLT-approved resolution plan addresses his liabilities as a personal guarantor, it does not eliminate the underlying debts of the companies that borrowed the money.
He concluded his video by urging people to verify claims about him circulating on WhatsApp and social media rather than accepting them as fact.
