Subhash Chandra eyes next investment: May borrow ₹2-4 crore from family to ‘work with friends in Switzerland’

Days after the National Company Law Tribunal (NCLT) approved a repayment plan that would leave creditors recovering only a fraction of their ₹22,006.57-crore claims, Essel Group Chairman Subhash Chandra said he plans to work with friends in Switzerland on investments and may borrow ₹2-4 crore from family to invest in start-ups.

In a video statement, Chandra said he had ₹6.5 crore left, which would have to be paid under the repayment plan. "Today I'm talking in a very simple way. I am not talking about a person who has lost everything. The last ₹6.5 crore I have left with will have to pay according to the plan," he said. Chandra added that his expenses were being met from rent from "a small residential house" and added that he had no regrets and would earn again.

Chandra's Switzerland plans

Talking about his next professional move, Chandra said he plans to work with friends in Switzerland who are involved in investment. He said he would provide more details in the next 1-2 weeks and may take a ₹2-4 crore loan from family to invest in start-ups.

Chandra also spoke about starting new businesses in India and creating employment. He said he had contributed at least ₹70,000 crore to the financial system during more than 50 years of working life.

NCLT repayment plan

The NCLT approved a repayment proposal under which creditors would recover only ₹6.5 crore against claims of ₹22,006.57 crore—about three paise for every ₹100 owed, or a 99.97% haircut.

The repayment plan received the backing of creditors holding more than 80% of the voting share. The NCLT said it had considered the value of Chandra's assets and found it considerably lower than the creditors' claims when examining the repayment proposal.

History of Chandra's insolvency case

The insolvency case stems from a ₹170-crore loan taken by Vivek Infracon, for which Chandra had given a personal guarantee. After the loan turned bad, Indiabulls Housing Finance initiated insolvency proceedings against Chandra in 2022. The NCLT admitted the case in April 2024.

The case will now return to the original division bench, which is expected to issue the formal order reflecting the majority view.

Meanwhile, Union Bank of India said it would challenge the NCLT-approved repayment plan before the National Company Law Appellate Tribunal (NCLAT).

In a statement on X, the bank said it and other public-sector creditors had opposed the resolution plan and urged the NCLT not to approve it. This came after HDFC Bank said it was exploring an appeal against the NCLT order.