Big Corporate Debt, Tiny Recovery: Subhash Chandra Case Draws Attention

Zee Group founder Subhash Chandra’s personal insolvency resolution has sparked a nationwide debate over the recovery of large corporate debts. According to the details cited in the case, admitted claims against Chandra stood at around ₹22,006 crore, while the repayment plan approved by the National Company Law Tribunal (NCLT) involved payment of only ₹6.5 crore. This translates into a recovery of roughly 0.03%, with about 99.97% of the claims effectively written off under the approved resolution plan.

The proposal faced opposition from some lenders, including LIC Housing Finance, which reportedly objected to receiving only around ₹38 lakh against claims of approximately ₹1,322 crore. However, the resolution plan secured 80.81% voting support from the creditors and was subsequently approved by the NCLT. The reasoning behind the approval was that liquidation of Chandra’s personal assets could potentially yield even less for creditors. The case has nevertheless raised questions about how insolvency laws operate for large borrowers compared with the treatment faced by ordinary borrowers when they default on loans or EMIs.