Overview
- The five-member NCLT bench, which on Wednesday asked the CBI to respond within four weeks, stayed a previous order that had approved Subhash Chandra’s repayment plan and restrained him from selling or transferring assets.
- Chandra’s proposal offered about ₹6.25 crore to creditors and ₹25 lakh for process costs against admitted claims of roughly ₹22,006.57 crore, a gap that prompted banks and large lenders to oppose the plan as inadequate.
- Creditors challenged the vote that approved the plan by saying the resolution professional wrongly admitted five entities that together held 61.78% of voting rights, and the third member, Nilesh Sharma, found no evidence those entities were related parties.
- Chandra has appealed to the NCLAT, which listed the challenge for hearing on September 29 and directed him to serve and implead creditors, and he maintains he was a guarantor for borrowing entities rather than a personal borrower.
- The CBI FIR over an alleged ₹1,322 crore LIC Housing loan fraud could shift the tribunal’s view of asset disclosure and claim validity, and the outcome may affect how guarantor liabilities are treated under personal insolvency rules.