Subhash Chandra says borrowers assure settlement of Rs 4,262 crore

Essel Group founder Subhash Chandra on Sunday said borrowers associated with his personal guarantees had assured him that they would reconcile their accounts with lenders and settle the balance of Rs 4,262 crore. Of the total amount of Rs 4,808 crore disbursed, the borrowers paid Rs 3,803 crore, leaving a balance of only Rs 998 crore, according to a statement from Chandra’s office.

“Against a payable amount of Rs 998 crore, claims filed were Rs 5,311 crore. After reducing the settled/paid claims of Rs 1,049 crore, the remaining is Rs 4,262 crore,” the statement said. According to the statement, HDFC Bank has 4-5 accounts with an outstanding amount of Rs 775 crore.

However, these are claims without a valid personal guarantee, it said. Canara Bank has an outstanding amount of Rs 348 crore. This was borrowing against the borrower’s assets in the US, the statement said. LIC Housing has an outstanding amount of Rs 1,322 crore.

This has been offered for settlement and part security is available, it said. Union Bank has an outstanding amount of Rs 164 crore, against which security is available. RBL Bank has an outstanding amount of Rs 119 crore.

“They were offered to pay by the borrower as settled with the large lender, but they refused,” the statement said. IndusInd Bank has an outstanding amount of Rs 240 crore. “They also had adequate security during the default period but did not convert it to cash.

Hence, kept security for further gains, at their own risk,” it said. Edelweiss has Rs 565 crore outstanding. “Clearly, more than Rs 500 crore security was available at the time of default. Matter is also pending in DRT,” the statement said.

Franklin Templeton has Rs 729 crore outstanding. “Borrower offered to sell security available during default period. But lender took the risk not to sell and expected to gain, but the share value went further down, hence kept as own risk,” it said.

Total personal guarantees signed by Chandra with lenders were Rs 22,000 crore. The National Company Law Tribunal (NCLT) order approving Subhash Chandra’s proposal to pay just Rs 6.25 crore to creditors in personal insolvency proceedings came after the majority of creditors supported the repayment plan.

The amount of Rs 4,262 crore differs from the earlier press statement of Rs 3,992 crore because some accounts were not taken into consideration as they neither voted for nor against, it said. The statement also pointed to borrowings from foreign funds, domestic lenders, NBFCs and corporates, saying most of these liabilities were either being settled or were backed by adequate assets.

George Mathew is an Associate Editor with The Indian Express, based in Mumbai. A veteran of financial journalism with nearly three decades of experience, he is one of the country’s most authoritative voices on banking, regulation, and the corporate sector.

Expertise & Focus Areas Mathew’s reporting covers the nerve center of India’s economy. His specialized beats include: The Reserve Bank of India (RBI): He has tracked the central bank's policy evolution through the tenures of multiple Governors, offering deep insights into monetary policy, repo rates, and banking regulation.

Banking & Insurance: Extensive coverage of public and private sector banks, non-performing assets (NPAs), and key legislative reforms like the Insurance Amendment Bills. Corporate Affairs: Mathew frequently breaks major stories related to India's largest conglomerates, with a specific focus on the Tata Group, documenting boardroom shifts and strategic decisions.

Financial Markets: Reporting on the complexities of Foreign Portfolio Investors (FPIs), IPOs, and currency fluctuations. Authoritativeness & Insight With a career dating back to the late 1990s, Mathew possesses a rare institutional memory of India’s financial liberalization and market crises.

His work is not limited to daily news; he frequently contributes to the "Explained" section, where he decodes complex financial legislations and market trends for a broader audience. His rigorous reporting has also been featured in scholarly platforms like the Economic and Political Weekly (EPW).

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