The office of Zee founder Subhash Chandra on Thursday clarified reports surrounding his personal insolvency proceedings before the National Company Law Tribunal (NCLT), saying that the widely reported Rs 22,000-crore figure does not represent his current outstanding debt.
According to the statement, the amount refers to the total claims filed against Chandra in his capacity as a personal guarantor. His office said the figures being reported did not reflect the latest position of the proceedings.
CHANDRA SAYS HE DID NOT PERSONALLY BORROW MONEY
Chandra's office said he had not taken loans in his personal capacity. Instead, he had provided personal guarantees for borrowings raised by companies that were associated, directly or indirectly, with the Essel Group.
The total value of guarantees signed by Chandra was around Rs 22,000 crore, the statement said.
It added that most of these guarantees were issued after January 24, 2019, when the group defaulted in the financial system.
RS 3,992 CRORE CLAIMS FROM OBJECTING LENDERS
The clarification said lenders who opposed the repayment proposal had filed claims totalling Rs 3,992 crore against Chandra as a personal guarantor.
Of this, claims amounting to Rs 620 crore had been settled, leaving Rs 3,372 crore.
The office said the borrowing companies had proposed paying around Rs 1,113 crore to several lenders and that discussions were still underway.
According to the statement, lenders had released Rs 2,856 crore in the relevant cases, while borrowers had repaid Rs 1,633 crore, leaving a balance of Rs 1,223 crore against claims of Rs 3,992 crore.
OTHER LENDERS FILED RS 16,386 CRORE IN CLAIMS
The office also addressed claims made by another set of lenders who either accepted the repayment proposal or did not object to it.
Their total claims stood at Rs 16,386 crore when filed, of which Rs 16,201 crore was admitted.
Chandra's office said the borrowing companies had disputed these claims and were working towards settling the outstanding amounts. The proposed settlements formed part of the repayment plan that had been approved by the NCLT, it added.
WHY THE REPAYMENT PLAN IS RS 6.5 CRORE
Chandra's office said the repayment plan was approved by 80.814% of creditors when it was put to a vote. It added that several of the remaining 19.186% creditors did not vote despite the voting window remaining open for multiple days.
The statement also sought to explain why the proposed repayment amount was only Rs 6.5 crore.
Chandra had declared assets worth Rs 39.08 crore to Parliament in 2016. By 2024, his total assets had fallen to Rs 31.79 crore, according to disclosures made to the resolution professional.
The assets included a residential property valued at around Rs 25 crore.
His office said Chandra had also used his personal funds on several occasions to pay employees' salaries when the borrowing companies were unable to do so. It argued that the Rs 6.5-crore repayment plan was therefore based on the assets and funds currently available to him.
OFFICE REJECTS RS 45,888-CRORE NET WORTH CLAIM
The statement also rejected reports that Chandra's net worth stood at Rs 45,888 crore in 2017.
According to his office, that figure was derived by treating the market capitalisation of Essel Group companies as Chandra's personal wealth. It said Chandra had challenged this calculation during the insolvency proceedings.
His office reiterated that he had made personal payments towards employee salaries when the companies responsible for the payments were unable to meet their obligations.
The personal insolvency proceedings have been pending before the NCLT since February 8, 2022. Chandra's office said that although the tribunal had expressed its view on the matter, a final order had yet to be issued.
As a result, it said, the insolvency case remains technically pending before the NCLT.
