Zee Group Founder and Chairman Subhash Chandra | Photo Credit: Yazhini M V _12573

HDFC Bank has put out a statement considering an appeal against the National Company Law Tribunal’s (NCLT) decision to allow media baron Subhash Chandra’s repayment plan of only ₹6.5 crore. The move comes as Chandra clarifies the total claim against him as only ₹3,992 crore.

“HDFC Bank’s admitted claim was only 3.2 per cent of the total stated claim amount. The Bank inherited this facility which was previously provided by HDFC Ltd. HDFC Bank had opposed and voted against this resolution, which was approved by the majority. The Bank is exploring filing an appeal at the NCLAT,” said in bank in light of reports stating how the Zee Group Founder has been allowed to pay just ₹6.5 crore against admitted claims of ₹22,006.57 crore.

However, reacting to dissenting creditors’ claims of ₹22,000 crore against him, Chandra on Thursday clarified that he “has not borrowed any money from any lender.”

“Total claim against Subhash Chandra as a personal guarantor, in the personal insolvency proceedings, is only ₹3,992 crore by the objectors of the plan and not ₹22,000 crore,” he said. Of this, a claim of ₹620 crore has been settled and a further ₹1,063 crore offered to be paid by the borrower entities.

“The borrowing entities for whom Chandra has provided personal guarantees have till date repaid ₹43,000 crore. The borrowing entities have assured to settle any other amount which might have left,” he said.

While it remains to be seen how HDFC reacts to this development, an analyst on anonymity said the bank’s appeal does not have legal merit. This is especially because the repayment plan has already been favoured by nearly 81 per cent of creditors. The only grounds for appeal may be if HDFC argues the lender has not investigated all of Chandra’s assets.

“NCLT has not made a mistake here. It stuck to letter of law. If anything the fault is with the lenders for agreeing to the plan. Why did you agree?” said the analyst on anonymity, adding that, NCLAT may still entertain the bank’s appeal, considering the outrage caused by the NCLT order.

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