Subhash Chandra’s NCLT Case: How Rs 22,000 Crore Debt Came Down to Rs 6.5 Crore
Subhash Chandra’s insolvency proceedings have come under the spotlight after the National Company Law Tribunal (NCLT) approved a repayment plan of just Rs 6.5 crore against admitted claims worth Rs 22,006.57 crore against the Zee founder as a personal guarantor.
The dispute, however, has its roots in a Rs 170-crore loan raised by Vivek Infracon in 2016. Over the years, the matter evolved into a lengthy insolvency battle involving creditor claims, changes in the resolution professional, resistance from major lenders and legal challenges before the NCLT.
The proceedings eventually produced a split verdict at the tribunal, requiring a third member to resolve the disagreement before the latest order was passed in August 2026.
From the original loan to the final NCLT decision, here is a year-by-year timeline of the key events in Subhash Chandra’s insolvency case.
| Period | Development |
|---|---|
| 2016 | Rs 170-crore loan: Indiabulls Housing Finance sanctioned a loan to Vivek Infracon Pvt Ltd. Subhash Chandra gave a personal guarantee for the borrowing. This is the loan that eventually triggered the insolvency proceedings against him. |
| 2019 | Loan default: The loan was recalled on February 4, 2019. Indiabulls subsequently pursued Chandra as the personal guarantor. |
| January–February 2022 | Insolvency case filed: After serving a demand notice, Indiabulls filed a Section 95 application before the NCLT to initiate personal insolvency proceedings against Chandra. |
| May 2022 | Resolution Professional appointed: NCLT appointed a Resolution Professional. The proceedings were subsequently put on hold following an interim order of the Supreme Court. |
| April 2024 | Insolvency process admitted: After the Supreme Court cleared the way, NCLT admitted the insolvency application against Chandra and the personal insolvency process formally began. |
| 2024 | Claims reached Rs 22,006.57 crore: The case was no longer limited to the original Rs 170-crore loan. Multiple lenders had claims against Chandra because he had provided personal guarantees for borrowings by various companies. |
| October 2024 | Rs 6.5-crore repayment plan proposed: The Resolution Professional placed Chandra’s repayment plan before creditors. It proposed Rs 6.25 crore for creditors and Rs 25 lakh towards insolvency-process expenses. |
| Late 2024 | Creditors approve plan: The repayment plan received 80.81% approval by voting share, although several major lenders opposed it and questioned the extremely low recovery. |
| 2025–2026 | Creditors challenge the plan: Several lenders raised objections over asset valuation, the voting process and other aspects of the repayment plan. A two-member NCLT bench eventually delivered different opinions, resulting in a split verdict. |
| August 25, 2026 | Third member backs the plan: NCLT Judicial Member Nilesh Sharma gave the decisive opinion supporting approval of the repayment plan. |
| August 27, 2026 | NCLT approves the repayment plan: The plan provides Rs 6.25 crore to creditors and Rs 25 lakh towards process expenses, against Rs 22,006.57 crore of admitted claims. This means creditors recover roughly 3 paise for every Rs 100 claimed. |
| August 27–28, 2026 | Creditors may appeal: Major lenders including HDFC Bank and LIC Housing Finance have indicated that they are considering challenging the NCLT order before a higher forum. |
The NCLT, in its August 25, 2026 order, approved the repayment plan in the personal insolvency proceedings involving Subhash Chandra. Under the plan, creditors will receive a total of Rs 6.25 crore, while another Rs 25 lakh has been set aside to cover insolvency-related expenses, taking the overall payout to Rs 6.5 crore.
This stands against admitted claims of Rs 22,006.57 crore in the proceedings.
Comments are closed.