‘Complete mockery’: Congress slams Subhash Chandra’s 0.028% NCLT settlement plan; social media reacts
Congress has criticised a repayment plan involving Zee owner Subhash Chandra, arguing that creditors may recover only a fraction of their claims.
Congress has criticised a repayment plan involving Essel Group founder Subhash Chandra. Creditors may recover only a fraction of their admitted claims.
Essel Group owns Zee Media. Chandra is the chairman emeritus of Zee Entertainment. He founded Zee TV in 1992 and Zee News in 1999.
Congress leader Jairam Ramesh described the outcome as a financial sacrifice. He said creditors were not merely receiving a “haircut”. He compared the settlement with a “mundan”, or complete shaving of the head.
Quick answers to key questions
The total admitted claims in Subhash Chandra's insolvency case amounted to approximately ₹22,006.57 crore.
The Congress party criticized the repayment plan as a 'complete mockery' of the Insolvency and Bankruptcy Code, 2016, claiming that creditors faced a 99.97% haircut, which they referred to as a 'mundan'.
The NCLT justified the approval by stating that rejecting the plan could lead to creditors recovering even less if Chandra were pushed into bankruptcy, as his personal assets were found to be worth considerably less than the recovery amount offered.
A 99.97% haircut means that creditors will only recover approximately 0.03% of their total claims, which amounts to about three paise for every ₹100 owed to them.
Creditors objected to the repayment proposal, labeling it 'unviable and unlawful', and questioned the legitimacy of votes from related-party entities that supported the plan, as well as the lack of a forensic investigation into Chandra's assets.
Ramesh said the decision mocked the Insolvency and Bankruptcy Code, 2016.
“In finance terminology, when creditors are owed money, and the debtor repays only part of it, the difference expressed as a percentage is called a haircut,” he wrote on X.
“This is not just a haircut. It is actually a mundan and makes a complete mockery of the Insolvency and Bankruptcy Code, 2016,” he added.
The NCLT settlement plan allocates ₹6.25 crore among eligible creditors. Total admitted claims were around ₹22,006.57 crore.
This means creditors could recover around 0.028% of their original claims. The implied loss is nearly 99.97%, or almost ₹22,000 crore.
Social media users have reacted to the settlement amount.
One user wrote, “Mundan is definitely more apt. Not a laughing matter though. Farmers commit suicide over their debt issues, and goons are sent for recovery from ordinary defaulters, while dozens of rich bigwigs are gifted with a salon treatment.”
“It is ridiculous. When a layperson misses a home loan EMI, the banks would go to the ends of the world to name and shame and reclaim the money, and here the same banks are happy to take almost a 100% haircut,” commented one of them.
“How about farmers? Are they eligible for this type of haircut?” asked one user.
One user commented, “Lenders are not taking a haircut. They are slicing their heads off and offering them on a platter to the borrower.”
“Injustice to every shareholder or LIC Housing Finance. Why the hell should they take a hit of ₹20,000 crore?” asked one user.
Subhash Chandra’s settlement
Indiabulls Housing Finance started insolvency proceedings against Subhash Chandra in 2022. Chandra personally guaranteed a ₹170 crore loan to Vivek Infracon. Indiabulls approached the tribunal after that loan had become bad.
Two tribunal members later disagreed about the repayment plan. Judicial Member Ashok Kumar Bhardwaj supported its approval. Technical Member Reena Sinha Puri found serious legal and procedural problems. Judicial Member Nilesh Sharma supported approval on 25 August, according to the Bar and Bench.
Several banks and financial institutions have opposed the proposal. They have questioned the extremely low recovery and the claim verification process. They have also challenged voting by entities allegedly connected with Chandra.
About the Author
Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.
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