Reliance Industries denies Subhash Chandra’s media allegations

Reliance Industries has rejected allegations made by Essel Group chairman Subhash Chandra regarding the company’s media entities, calling the remarks baseless. The denial comes amid a wider dispute over Chandra’s personal insolvency case and reports claiming that lenders faced a 99.97% haircut on more than ₹22,000 crore of claims.

In a statement issued on August 28, 2026, and filed with the BSE and the NSE of India, Reliance said it was “dismayed” by the insinuations against its media brands. A company spokesperson said Reliance’s media businesses have never been used to attack anyone and would not be used for such purposes in the future.

The company also said it continues to hold Chandra in high regard as a businessman and entrepreneur.

Dispute over ₹22,006 crore claims

The controversy follows a National Company Law Tribunal (NCLT) order approving a settlement in Chandra’s personal insolvency proceedings. Under the approved plan, Chandra is required to contribute ₹6.25 crore from his personal assets against admitted claims of ₹22,006 crore.

This led to reports describing the settlement as a 99.97% haircut for lenders. However, government sources said such an interpretation is misleading because the ₹22,006 crore figure represents claims against Chandra in his capacity as a personal guarantor, rather than money he personally borrowed.

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The insolvency proceedings stemmed from a personal guarantee Chandra provided for a loan taken by Vivek Infracon from Indiabulls. After the loan defaulted, insolvency proceedings were initiated against Chandra as guarantor.

What did the NCLT approve?

The Delhi bench of the NCLT initially delivered a split verdict before the matter was referred to judicial member Nilesh Sharma. The settlement was subsequently approved under Section 114 of the Insolvency and Bankruptcy Code.

The tribunal relied on an assessment by the Resolution Professional, which found that Chandra’s personal assets were significantly lower than the amount being claimed. It concluded that forcing him into bankruptcy could potentially result in even lower recovery for creditors.

Under the settlement, Chandra will contribute ₹6.25 crore, while approximately ₹1,494 crore is expected from the corporate borrowers. Creditors representing 80.81% of the voting share supported the resolution plan.

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Why are lenders challenging the settlement?

The ₹22,006 crore comprises admitted claims connected to guarantees covering borrowings by several Essel and Zee-related companies. Government sources said Chandra’s guarantees covered around ₹2,574 crore when the relevant loans were originally taken, with additional guarantees subsequently provided as security.

LIC Housing Finance and HDFC Bank opposed the settlement, with LIC calling it unviable and unlawful. Axis Bank, Canara Bank, RBL Bank and Union Bank were among other dissenting lenders.

Creditors have also questioned the decline in Chandra’s declared net worth, from ₹45,888 crore in 2017 and ₹40,562 crore in 2018 to around ₹31.79 crore currently.

Economic Times reported that LIC Housing Finance and HDFC Bank plan to challenge the NCLT order before the National Company Law Appellate Tribunal (NCLAT).

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