Essel Group debt: Now, LIC Housing Finance, Union Bank to challenge NCLT's repayment plan

In a huge setback to media baron Subhash Chandra, two more opposing creditors have now said that they will appeal before the National Company Law Appellate Tribunal (NCLAT) against the National Company Law Tribunal's (NCLT) approval of a ₹6.5 crore repayment plan in the admitted claim of ₹22,006 crore to resolve the personal insolvency proceedings of the Zee Group founder and chairman emeritus.

Under the recently cleared NCLT repayment plan, the media baron has to pay around ₹6.5 crore against creditor claims of ₹22,006.57 crore in his insolvency case. This translates into a haircut of 99.97% and a recovery of roughly 0.03% of the total admitted claims.

DO CHECKOUT | 'Will work with friends in Switzerland': Media baron Subhash Chandra reveals next course of action after NCLT order

The two creditors who will now appeal to the NCLAT are LIC Housing Finance and Union Bank of India. In a post on X, LIC Housing Finance confirmed that it will file an appeal before the NCLAT along with other public financial institutions.

LIC Housing Finance wrote, "LIC Housing Finance Limited (LIC HFL) and other public financial institutions, including Canara Bank and Union Bank of India (UK) Ltd., voted against the Repayment Plan proposed by Dr. Subhash Chandra. The Plan was ultimately approved on account of the votes cast in favour of the Repayment Plan by the other Financial Creditors, aggregating to 80.81%. LIC HFL will immediately file an appeal before the Hon’ble NCLAT, along with the other public financial institutions."

MUST READ | LIC Housing’s Rs 1,322-cr Subhash Chandra claim cut to Rs 38 lakh under NCLT plan: Report

Moreover, Union Bank of India said in its statement that they, along with other public sector undertakings (PSUs) such as LIC Housing Finance and Canara Bank, have rejected the NCLT's resolution plan and pleaded before the NCLT not to approve the same. "However, due to a majority vote of certain private creditors, the same plan has been approved by the NCLT. Now, Union Bank of India is immediately challenging the decision of NCLT before NCLAT."

Before this, HDFC Bank said on Thursday that it has voted against Subhash Chandra's resolution plan and is now considering filing an appeal against the NCLT order. In its statement, India's largest private sector bank said that its admitted claim in the matter was only 3.2% of the total stated claim amount, ₹680 crore, which it inherited from its erstwhile parent company HDFC Ltd, before the merger of the two entities.

“With regard to the referred NCLT matter, HDFC Bank’s admitted claim was only 3.2% of the total stated amount. The bank inherited this facility, which was previously provided by HDFC Limited. HDFC Bank had opposed this settlement and voted against the resolution, which was approved by the majority. The bank is exploring an appeal at NCLAT,” the lender said in a statement.

DON'T MISS | 'Essel Group repaid ₹43,000 crore debt': Subhash Chandra seeks independent audit to examine his debt

Meanwhile, Subhash Chandra on Friday said that the Essel Group repaid around ₹43,000 crore of the total ₹45,000 crore debt and called for an independent audit of the media-to-infrastructure conglomerate's debt. Chandra, who has also been a Rajya Sabha MP, said that he was responding to "allegations and speculation" around him, his family and the group's financial position.

Furthermore, he rejected claims that the matter before the NCLT involved ₹22,000 crore. He added that the actual amount linked to objecting creditors was nearly ₹3,900 crore and stemmed from personal guarantees given to certain lenders.