Dr. Subhash Chandra: ₹4,262 Cr Insolvency Settlement Plan

Dr. Subhash Chandra’s office has released a comprehensive statement clarifying his personal insolvency proceedings before the National Company Law Tribunal (NCLT). The statement aims to address circulating “wrong perceptions” and outlines a plan for borrowers to settle ₹4,262 crore.

The statement detailed specific financial figures related to the proceedings:

• Lenders disbursed approximately ₹4,808 crore.
• Borrowing entities repaid ₹3,803 crore.
• Claims lodged against Dr. Chandra as a personal guarantor totaled ₹5,311 crore.
• After settlements amounting to ₹1,049 crore, remaining claims stood at ₹4,262 crore.

Dr. Chandra noted that while he signed personal guarantees aggregating ₹22,000 crore, only about ₹4,800 crore of these were tied to funds actually borrowed by entities. He clarified that the majority of these guarantees were signed post-default and that primary loans were secured by companies, not by him personally.

Reconciliation Key to Claim Settlement

A key point of contention is the discrepancy between the amount described as payable and the claims submitted by lenders. This necessitates a reconciliation process between the lenders and the specific borrowing entities involved. Dr. Chandra has confirmed engagement with these borrowers, who have assured settlement of the outstanding ₹4,262 crore once this reconciliation is complete.

The statement also addressed other borrowings from various sources, including foreign funds, domestic funds, non-banking financial companies (NBFCs), and corporates. These are reportedly either undergoing settlement or are adequately backed by assets. Dr. Chandra urged lenders to directly engage with the borrowing entities to reconcile accounts and facilitate recovery.

Addressing Public Concerns and Next Steps

This detailed clarification was issued amidst various online posts and hashtags, such as #PaiseVapasKaro and #PaisaWapasKaro, indicating public interest and concern. To further engage with stakeholders and the public, Dr. Chandra plans an upcoming Instagram Live session. This session is scheduled for August 31, where he intends to directly discuss the NCLT proceedings and his personal insolvency case.