NEW DELHI, Aug 27: The National Company Law Tribunal’s approval of a repayment plan for Essel Group founder Subhash Chandra does not mean banks have written off 99.97 per cent of Rs 22,000 crore in loans, sources said, citing the insolvency court’s order.
The Rs 22,006 crore figure represents claims admitted against Chandra in his capacity as a personal guarantor for loans taken by several Essel/Zee-linked companies, not debt personally borrowed by him, they said.
The distinction is critical to understanding the NCLT order. The plan provides for recovery of about Rs 6.25 crore from Chandra’s personal estate, but the principal corporate borrowers remain liable for their debts and the repayment plan envisages about Rs 1,494 crore in…