Zee Founder Subhash Chandra Sells Assets, Lives on Rent
By ThePip Desk
Zee founder Subhash Chandra reveals selling family assets and his home to repay loans, now living on rental income. His NCLT plan faces lender challenges.
Zee and Essel Group founder Subhash Chandra recently announced he has sold off family and personal assets, including his house, to repay loans. He now claims to be covering his daily expenses by renting out a portion of a small residential property he still owns.
This development follows the National Company Law Tribunal’s (NCLT) approval on August 25 of Chandra’s repayment plan. It outlines how he will address significant financial obligations.
Key Financial Details
Chandra stated he has ₹6.5 crore remaining after selling his assets. According to the NCLT-approved plan, ₹6.25 crore of this amount is designated for creditors.
An additional ₹25 lakh is allocated to cover the costs of the insolvency process. These figures are set against admitted claims totaling approximately ₹22,006.57 crore.
Chandra emphasised that he sold everything, including the company Zee and his family home, to ensure everyone was paid. This statement, reported by India Today, highlights the extent of his asset divestment.
Chandra’s Outlook and Future Plans
Despite the significant financial changes, Chandra maintains a forward-looking perspective. He reportedly stated to The Economic Times that he runs his expenses with rental income and has no regrets, confident in his ability to rebuild.
He plans to engage with a friend in Switzerland to explore investment opportunities. Chandra is also considering borrowing between ₹2-4 crore from family to invest in startups and other ventures, as reported by The Week.
Lenders Challenge Repayment Plan
However, the NCLT’s approval of Chandra’s repayment plan faces immediate challenges. On August 29, major lenders announced their intention to appeal the decision, escalating the legal dispute.
Canara Bank, which held a 1.60% voting share, explicitly voted against the plan and will file an appeal with the National Company Law Appellate Tribunal (NCLAT). They also sought a forensic audit, but this request was not allowed due to their minority voting share.
Union Bank of India (UK) and LIC Housing Finance have also confirmed they rejected the plan and will challenge the NCLT order. They plan to appeal alongside other public financial institutions.