Essel Group Chairman Subhash Chandra has responded to criticism regarding his personal insolvency proceedings. He stated that following the financial crisis of 2019, the group faced a debt of approximately ₹45,000 crore, of which he has already repaid around ₹43,000 crore.
In a video message, Subhash Chandra mentioned that he and his family sold their personal assets, including their home, to repay the group’s debt. He also questioned the figures regarding the claims of approximately ₹22,000 crore filed against him before the National Company Law Tribunal (NCLT), stating that this amount did not represent funds he had personally borrowed.
These statements come just days after the NCLT approved a resolution plan. Under this plan, Subhash Chandra is set to pay approximately ₹6.5 crore against admitted claims totalling around ₹22,006 crore. Creditors have criticised the plan because the proposed recovery amount represents only 0.03% of the admitted claims. However, Subhash Chandra maintained that the ₹22,000 crore figure should be viewed in the context of his role as a personal guarantor for loans taken by companies associated with the Essel Group.
‘We sold our home, but paid everyone back’
Essel Group Chairman Subhash Chandra explained that the group’s financial troubles came to light on January 24, 2019, due to an asset-liability mismatch. He recalled publicly admitting his mistakes at the time and promising to repay the dues owed to the financial system.
“I admitted that I had made some mistakes,” he said. Subsequently, he pushed the group’s borrowing entities to meet their obligations. Subhash Chandra noted that when the crisis began, the group had liabilities amounting to approximately ₹45,000 crore, and claimed that about ₹43,000 crore has been repaid since then.
“We sold family assets, sold our own assets, and practically sold the company itself; we held nothing back; we even sold our home, but we paid everyone back,” he stated. According to Chandra, about ₹2,000 crore remains tied up with companies where payments were delayed due to the asset-liability mismatch.
He remarked that his current financial situation is vastly different from the wealth he possessed during the peak of his career. Chandra stated that he now has approximately ₹6.5 crore and a small residential property, a portion of which he has rented out to cover his living expenses.
Essel Group Chairman Subhash Chandra questioned the ₹22,000 crore figure.
Subhash Chandra also questioned the manner in which the figure of ₹22,006 crore was presented in the report concerning his insolvency proceedings. He stated that this amount represents claims arising from personal guarantees he had provided for loans taken by companies associated with the group. He clarified that he had not personally borrowed ₹22,000 crore from banks and financial institutions.
Subhash Chandra separately noted that the claims of the lenders objecting to the resolution plan amount to approximately ₹3,900 crore. He stated that a settlement of around ₹620 crore has already been reached, while the borrowing companies have proposed paying approximately ₹1,100 crore to the lenders.
This discrepancy is significant because the NCLT proceedings relate to Chandra’s liabilities as a personal guarantor, whereas the actual loans were taken by companies associated with the Essel Group. Under the resolution plan approved by the tribunal, Subhash Chandra is required to pay approximately ₹6.5 crore against the admitted claims of ₹22,006 crore.
Lenders have criticised the proceedings due to the vast gap between the admitted claims and the proposed payout amount. HDFC Bank has indicated that it is considering challenging the NCLT order before the appellate tribunal.
Call for Independent Audit
Essel Group Chairman Subhash Chandra stated that an independent audit of the group’s borrowings, payments, and outstanding liabilities would help resolve the dispute. He appealed to the banking system, the Ministry of Finance, and senior banking officials to appoint an independent auditor to examine the group’s financial records. He said, “How much was borrowed when the group first defaulted in the financial market, and how much has been paid off so far? The truth will come to light.”
Chandra remarked that such a process would reveal the extent of the group’s borrowings at the onset of the crisis and the amount of payments made subsequently. He also dismissed comparisons made between him and businessmen accused of misusing the country’s financial system. He stated that he had publicly acknowledged his mistakes and worked towards settling the group’s liabilities. “I believe that anyone to whom money is owed should be paid,” he said.
Essel Group Chairman Subhash Chandra also questioned reports claiming that his personal net worth stood at approximately ₹45,000 crore when the Essel Group was at its peak. He explained that this figure was derived from the market capitalisation or valuation of the group’s companies and was erroneously portrayed as his personal wealth.
His office stated that his total net worth in 2024 was ₹31.79 crore, which included a residential property valued at approximately ₹25 crore. The office further noted that he had declared assets worth ₹39.08 crore upon becoming a Rajya Sabha member in 2016.
Chandra questioned how his personal wealth could have surged from approximately ₹39 crore in 2016 to ₹45,000 crore just a year later. He dismissed the ₹45,000 crore personal wealth figure as a “myth,” stating that the reports failed to distinguish between the group’s valuation and his own personal assets.
‘I will earn again’
Despite the collapse of a large part of his business empire, Chandra stated that he has no regrets and wants to rebuild his career. “I will earn again. I am a pioneer,” he said. He further added that he knows how to build a business and wants to start over.
