NCLT case: Dr Subhash Chandra says 'claims not true and inaccurately represent facts' over reports of 'Rs 22,000 crore loan'

Essel Group Chairman Dr Subhash Chandra on Thursday disputed several figures and claims that have appeared in certain media reports over an NCLT loan-settlement order. He said in a statement that several reports suggesting that he had personally borrowed money or had guaranteed loans worth Rs 22,000 crore were incorrect, and urged media outlets to present the facts accurately.

Dr Subhash Chandra in a statement said, “False rumours and a figure of ₹22,000 crore was circulated on Mukesh Ambani's network - CNBC TV18. Ambani tried to take over Zee. I also called him. When I did not receive a call back, I wrote him a letter. Mukesh ji, please do not engage in propaganda. Your father, Dhirubhai, was a sensible and composed person. I learned a lot from your father. I have nothing to lose but you have a lot to. Please stop your people from doing this. Ambani has a role in the fall of Zee’s shares. I have not asked the government for anything. A Congress MP took the lie forward. They also have to pursue their politics. Please don’t play this game. I would be happy to see you move forward, but please do not do this in India."

Dr Chandra issued an official statement saying that he is issuing a press release in the interest of all stakeholders. “I have to state that certain vested media houses are spreading wrong information about my personal insolvency matter in NCLT. I urge all media platforms to publish the facts and to remove any misinformation that is incorrectly interpreted from the Court order.”

A statement from his office said, "This clarification addresses certain allegations and misleading reports claiming that the companies which voted in favour of the repayment plan are associate entities. We would like to state that this claim is not true and inaccurately represents the facts. Some of the associate entities referenced in the reports, belonged to Shri Jawahar Goel, whose business interests were separated from Dr. Subhash Chandra in 2008-09 through a family business separation process. The separation process and subsequent division of the business was duly informed to the stock exchanges and the regulator. Further, the term ‘associate entity’ is well-defined in the Insolvency and Bankruptcy Code statutes. In accordance with the provisions of the Code, the companies concerned do not qualify as associate entities of the Group.”

Dr Chandra said that he had not borrowed any money from any lender and was involved in the matter only in his capacity as a personal guarantor for borrowing entities associated with the Essel Group. He said that the total claims against him in the personal insolvency proceedings, filed by lenders objecting to the repayment plan, stood at Rs 3,992 crore, not Rs 22,000 crore as suggested in some reports.

Besides, Rs 620 crore of the Rs 3,992 crore claims has already been settled, he said, adding that the borrowing entities have offered a further settlement of Rs 1,063 crore to the lenders concerned. Dr Chandra said that the borrowing entities for which he had provided personal guarantees had repaid nearly Rs 43,000 crore against total company dues of around Rs 45,000 crore as of January 24, 2019. The borrowing entities have assured that they will settle any remaining amount.

He also rejected reports regarding his personal net worth, saying that the market capitalisation of Essel Group companies had been incorrectly treated as his individual wealth. Dr Subhash Chandra NCLT case: Why Rs 22,000 crore claim is not his debt “Certain vested media houses are spreading wrong information about my personal insolvency matter in NCLT,” he said. He said the amounts quoted in reports were taken from documents showing claims filed in the case.

Rs 43,000 crore repaid by borrowing companies

He said the companies for which he had given personal guarantees had total outstanding borrowings of around Rs 45,000 crore as of January 24, 2019. “Out of this, they have returned close to Rs.43000 crores since that day,” Dr Chandra said. Dr Chandra also referred to his declaration of assets made in Parliament in 2016, when he had declared total assets worth Rs 39.08 crore. He questioned how a bank could have accepted a personal net worth of Rs 45,888 crore in 2017 when his parliamentary declaration a year earlier had shown assets worth Rs 39.08 crore.