LIC Housing’s Rs 1,322-cr Subhash Chandra claim cut to Rs 38 lakh under NCLT plan: Report
The housing finance company had sanctioned financial facilities under two loan accounts in which Chandra had provided a personal guarantee. According to LICHFL, the company continues to hold its rights and security interests over the assets against which the loans were secured.
- Aug 29, 2026,
- Updated Aug 29, 2026 11:45 AM IST
LIC Housing Finance Ltd (LICHFL) faces a steep haircut on its claim in the insolvency proceedings against Essel Group founder Subhash Chandra, with the lender set to receive just Rs 38.09 lakh against an admitted claim of Rs 1,322.39 crore under a repayment plan approved by the National Company Law Tribunal (NCLT), according to a report in the Indian Express.
The housing finance company had sanctioned financial facilities under two loan accounts in which Chandra had provided a personal guarantee. According to LICHFL, the company continues to hold its rights and security interests over the assets against which the loans were secured.
The lender’s claim and the recovery proposed under Chandra’s repayment plan highlight the sharp gap between the amount claimed by creditors and the amount available under the personal insolvency resolution process.
LICHFL says security rights remain intact
Following the NCLT order, LICHFL said the Rs 1,322.39-crore figure represented its admitted claim in the insolvency proceedings. Against this, the repayment plan provides for a recovery of Rs 38.09 lakh.
LICHFL, however, said the NCLT order does not affect its rights over the secured assets linked to the financial facilities.
“LICHFL continues to hold and retain all its rights, security interests, enforcement remedies and recovery avenues over the said secured assets,” the company said in its statement.
MUST READ: 'Essel Group repaid ₹43,000 crore debt': Subhash Chandra seeks independent audit to examine his debt
The lender also clarified that the insolvency resolution process relates to Chandra in his capacity as a personal guarantor under the Insolvency and Bankruptcy Code, 2016. It does not extinguish or alter the corporate liabilities of the principal borrowers, according to the company.
NCLT approves Chandra’s repayment plan
The NCLT has approved Chandra’s proposal to pay Rs 6.25 crore against guarantees signed for loans totalling around Rs 22,000 crore.
However, Chandra’s side has disputed the interpretation of the overall liability, stating that the claims against him as a personal guarantor in the insolvency proceedings amounted to around Rs 3,992 crore.
HDFC Bank, another creditor in the proceedings, had an admitted claim equivalent to 3.2% of the total stated claims. The bank inherited the facility from erstwhile HDFC Ltd and opposed the proposed settlement, but the resolution plan was approved by the required majority.
HDFC Bank has said it is exploring an appeal against the NCLT order.
Insolvency case linked to Essel Group debt
The proceedings stem from personal guarantees provided by Chandra for borrowings of companies associated with the Essel Group. Indiabulls Housing Finance had initiated the insolvency proceedings against Chandra in 2024.
The NCLT’s approval means the matter will not proceed into bankruptcy proceedings under the current resolution plan.
The case is separate from corporate insolvency proceedings involving Essel Group companies and from regulatory matters involving Zee Entertainment Enterprises and its executives.
For LIC Housing, the key issue remains the distinction between the recovery offered under Chandra’s personal insolvency resolution plan and its continuing rights over the secured assets backing the underlying loans.
DO CHECKOUT | NCLT order misread: Subhash Chandra's ₹22,006 cr case isn't a 99.97% bank loss, say govt sources
LIC Housing Finance Ltd (LICHFL) faces a steep haircut on its claim in the insolvency proceedings against Essel Group founder Subhash Chandra, with the lender set to receive just Rs 38.09 lakh against an admitted claim of Rs 1,322.39 crore under a repayment plan approved by the National Company Law Tribunal (NCLT), according to a report in the Indian Express.
The housing finance company had sanctioned financial facilities under two loan accounts in which Chandra had provided a personal guarantee. According to LICHFL, the company continues to hold its rights and security interests over the assets against which the loans were secured.
The lender’s claim and the recovery proposed under Chandra’s repayment plan highlight the sharp gap between the amount claimed by creditors and the amount available under the personal insolvency resolution process.
LICHFL says security rights remain intact
Following the NCLT order, LICHFL said the Rs 1,322.39-crore figure represented its admitted claim in the insolvency proceedings. Against this, the repayment plan provides for a recovery of Rs 38.09 lakh.
LICHFL, however, said the NCLT order does not affect its rights over the secured assets linked to the financial facilities.
“LICHFL continues to hold and retain all its rights, security interests, enforcement remedies and recovery avenues over the said secured assets,” the company said in its statement.
MUST READ: 'Essel Group repaid ₹43,000 crore debt': Subhash Chandra seeks independent audit to examine his debt
The lender also clarified that the insolvency resolution process relates to Chandra in his capacity as a personal guarantor under the Insolvency and Bankruptcy Code, 2016. It does not extinguish or alter the corporate liabilities of the principal borrowers, according to the company.
NCLT approves Chandra’s repayment plan
The NCLT has approved Chandra’s proposal to pay Rs 6.25 crore against guarantees signed for loans totalling around Rs 22,000 crore.
However, Chandra’s side has disputed the interpretation of the overall liability, stating that the claims against him as a personal guarantor in the insolvency proceedings amounted to around Rs 3,992 crore.
HDFC Bank, another creditor in the proceedings, had an admitted claim equivalent to 3.2% of the total stated claims. The bank inherited the facility from erstwhile HDFC Ltd and opposed the proposed settlement, but the resolution plan was approved by the required majority.
HDFC Bank has said it is exploring an appeal against the NCLT order.
Insolvency case linked to Essel Group debt
The proceedings stem from personal guarantees provided by Chandra for borrowings of companies associated with the Essel Group. Indiabulls Housing Finance had initiated the insolvency proceedings against Chandra in 2024.
The NCLT’s approval means the matter will not proceed into bankruptcy proceedings under the current resolution plan.
The case is separate from corporate insolvency proceedings involving Essel Group companies and from regulatory matters involving Zee Entertainment Enterprises and its executives.
For LIC Housing, the key issue remains the distinction between the recovery offered under Chandra’s personal insolvency resolution plan and its continuing rights over the secured assets backing the underlying loans.
DO CHECKOUT | NCLT order misread: Subhash Chandra's ₹22,006 cr case isn't a 99.97% bank loss, say govt sources