Overview
- A five‑member NCLT bench, which on Tuesday stayed the August 25 order, has directed Subhash Chandra not to sell, transfer or encumber any property while the tribunal reconsiders the repayment plan.
- The suspended plan would have paid ₹6.25 crore to creditors and ₹25 lakh for process costs against admitted claims of about ₹22,006.57 crore, a recovery of roughly 0.03 percent.
- Several large lenders, including LIC Housing Finance, HDFC Bank, Canara Bank and Union Bank of India, have challenged the NCLT approval at the NCLAT and urged urgent hearings to overturn the payout.
- Dissenting creditors say votes from five entities allegedly linked to Chandra were decisive in the 80.81% creditor approval and they have also pressed for a forensic audit and full scrutiny of vote eligibility.
- The tribunal will now rehear the matter after three earlier judicial opinions diverged and the resolution professional’s valuation that disclosed about ₹31.79 crore in assets will be tested against creditor allegations and recovery expectations.