Zee Group founder Dr Subhash Chandra has addressed questions surrounding his personal insolvency case, loan guarantees and the widely discussed Rs 22,000-crore figure during an Instagram Live session. Chandra said he had never personally borrowed the money in question and explained that he had acted as a guarantor for loans taken by companies linked to the Essel Group.
The businessman used the live session to respond directly to questions about his financial position, the National Company Law Tribunal (NCLT) proceedings and reports surrounding his personal wealth.
His comments come days after the NCLT approved a repayment resolution plan in his personal insolvency case, while some lenders have indicated that they will challenge the order.
What Did Subhash Chandra Say About The Rs 22,000 Crore Claim?
Chandra rejected the impression that he had personally borrowed Rs 22,000 crore from Indian banks.
He explained that the figure relates largely to claims arising from personal guarantees that he had provided for loans taken by various companies.
According to Chandra, he had stood as a guarantor for around 18 to 20 companies that were directly or indirectly associated with the Essel Group.
He said these companies had taken loans for business expansion and that the money was not borrowed for his personal use.
What Is The Difference Between A Borrower And A Guarantor?
Chandra also explained the distinction between the two.
A borrower is the person or company that actually takes a loan from a bank. A guarantor, on the other hand, agrees to repay the loan if the borrower fails to meet its obligations.
Chandra said the companies were the actual borrowers, while he had provided personal guarantees for their loans.
He acknowledged that giving these guarantees was one of the biggest mistakes of his career and said it contributed to his current financial situation.
What Did He Say About His Personal Wealth?
Chandra also addressed questions about his personal assets.
He said that he had declared assets worth approximately Rs 39 crore in an affidavit submitted to the Election Commission. According to his latest assessment, his total assets currently stand at around Rs 31 crore.
He further said that banks had not simply waived the outstanding loans and maintained that the remaining dues would be settled by the actual borrowers.
What Is The NCLT Case About?
The controversy is linked to a personal insolvency case involving Chandra and financial claims arising from guarantees he had provided.
The NCLT recently approved a repayment plan involving Chandra. However, Canara Bank, Union Bank of India and LIC Housing Finance have decided to challenge the tribunal’s approval, arguing that the plan does not adequately address their interests and recoveries.
The case has attracted significant attention because of the gap between the large claims filed by creditors and the amount proposed under the resolution plan.
What Is Subhash Chandra Planning Next?
Despite the financial controversy, Chandra said he intends to continue working.
During the Instagram Live session, he revealed plans to launch a new startup with friends and business partners.
He said the proposed venture would be undertaken while complying with all applicable legal requirements.
The announcement comes as Chandra attempts to directly communicate his position to the public. He had announced the Instagram Live as a way to answer questions without intermediaries and urged people to form their opinions after hearing his side.
What Happens Next?
The NCLT case is not necessarily over, with lenders challenging the approved resolution plan.
For Chandra, the immediate focus is likely to remain on the legal proceedings while he looks towards his next business venture.
His Instagram Live has also highlighted the importance of distinguishing between personal borrowing, corporate debt and liabilities arising from personal guarantees — three issues that have become central to the controversy surrounding the Essel Group founder.
