Subhash Chandra has issued a fresh clarification on his personal insolvency proceedings, saying borrowers linked to his personal guarantees have assured him that they will settle the remaining ₹4,262 crore claimed by lenders, subject to reconciliation of accounts.
The statement, issued by Chandra’s office on August 30, comes amid social media posts around the National Company Law Tribunal (NCLT) settlement, including the hashtag #PaiseVapasKaro. Chandra said there has been a 'wrong perception and understanding' of the matter and provided a detailed account of the claims.
A key clarification in the statement is that Chandra says his personal borrowing was zero, while he had signed personal guarantees totalling ₹22,000 crore. Of this, ₹17,200 crore in guarantees were signed when the borrowers originally raised the funds, while another ₹4,800 crore were signed after defaults had occurred.
The statement says the Resolution Professional (RP), appointed by the NCLT, prepared the repayment plan after examining Chandra’s assets and available funds. It notes that his assets declared in Parliament in 2016 were valued at ₹39.08 crore and subsequently reduced to ₹31.79 crore, including a residential house valued at ₹25 crore that was also mortgaged. This left liquid assets of ₹6.79 crore, according to the statement.
The statement also provides a lender-wise breakdown of the claims. According to the table on pages 1 and 2, borrowers had received ₹4,808 crore across the listed lenders and had already repaid ₹3,803 crore, leaving a balance of ₹998 crore. However, claims filed against the personal guarantor amounted to ₹5,311 crore. After ₹1,049 crore in claims were settled or paid, the balance stood at ₹4,262 crore.
Chandra’s office said the ₹4,262-crore figure differs from the approximately ₹3,992 crore cited in its earlier press statement because some accounts were not included as they had neither voted for nor against the repayment plan.
“Dr. Subhash Chandra has discussed with all borrowers, and they have assured to settle this Rs. 4262 Crores after reconciliation with lenders, settle and pay the balance,” the statement said.
The lender-wise data also highlights the differences between amounts disbursed, repayments made and claims against Chandra as personal guarantor. For instance, the statement says India Bulls Housing Finance had disbursed ₹726 crore, while borrowers had paid back ₹771 crore, with a ₹429-crore claim against the personal guarantor subsequently settled. Axis Bank Group had disbursed ₹388 crore and received ₹157 crore, while a ₹620-crore claim was settled, with any remaining payment from the settlement still in process.
For other lenders, the statement raises questions around available securities and the treatment of claims. It says HDFC Group’s ₹775-crore claim was without a valid personal guarantee; Canara Bank’s ₹348-crore claim related to borrowing against assets in the US; and Edelweiss had more than ₹500 crore of security available at the time of default, with the matter also pending before the DRT.
The statement similarly says securities were available in cases involving Franklin Templeton and IndusInd Bank, while LIC Housing Finance had been offered a settlement and part security was available. It also says RBL Bank had been offered payment by the borrower but refused it, while Union Bank had security available.
Beyond the lenders listed in the table, Chandra’s office said there was 'substantial borrowing' from foreign funds, domestic funds, NBFCs and corporates. According to the statement, most of these obligations were either settled or are being settled by the borrowers, while the remaining obligations either have adequate assets against them or are expected to be paid.
Chandra has urged lenders to engage directly with the borrowers, reconcile their outstanding accounts and recover the amounts due from them.
The latest statement therefore puts the focus back on the underlying borrowers and reconciliation of lender claims, rather than Chandra’s personal borrowing, which he maintains was zero. It also adds a new figure of ₹4,262 crore to the ongoing discussion around his personal insolvency proceedings.
