NCLT Setback for Subhash Chandra, Loan Settlement Plan Put on Hold

Zee Media chairman Subhash Chandra is facing fresh developments in the legal battle over his personal guarantee obligations linked to loans of Essel and Zee Group companies. A five-member special bench of the National Company Law Tribunal (NCLT) has directed the CBI to submit its response within four weeks and adjourned the matter due to the shortage of benches. The bench observed that the CBI investigation could have a significant bearing on the proceedings. Chandra, who put his personal net worth at Rs 31.79 crore, had proposed a resolution plan involving a payment of Rs 6.50 crore to creditors, claiming that it had received the support of 80.81% of creditors.

However, major lenders including LIC Housing Finance, IDBI, HDFC, Axis Bank and Canara Bank opposed the plan. Although NCLT member Nilesh Sharma had initially approved the proposal, a five-member special bench stayed the order on September 1 after noting the absence of a majority view. The matter was further complicated by a CBI FIR in the LIC Housing Finance-related fraud case. On the creditors’ request, the NCLT also restrained Chandra from selling or transferring his assets until further orders. A dispute has also emerged over the identity of five entities holding a combined 61.78% voting share, with allegations that they were related parties and Chandra’s side disputing the claim. Chandra has challenged the special bench’s orders before the National Company Law Appellate Tribunal (NCLAT).