PSU lenders appeal Subhash Chandra repayment plan
Analysis based on 6 articles · First reported Aug 29, 2026 · Last updated Aug 30, 2026
The appeals by major public sector lenders signal ongoing legal uncertainty over the recovery of substantial dues from Subhash Chandra, potentially affecting the lenders' balance sheets and provisioning. The low recovery rate under the approved plan may negatively impact market sentiment for the involved banks and the Essel Group.
Public sector lenders LIC Housing Finance, Canara Bank, and India have announced they will challenge the India — National Company Law Tribunal's (NCLT) approval of Subhash Chandra's repayment plan in his personal insolvency case. The lenders, which collectively held an 8.45% voting share, voted against the plan, which was approved by other financial creditors holding 80.81% of the voting share. Under the NCLT order, Chandra will pay Rs 6.5 crore to settle admitted creditor claims of more than Rs 22,000 crore. The lenders will file appeals before the India — National Company Law Appellate Tribunal (NCLAT). HDFC Bank, which also voted against the plan, is exploring an appeal. The case relates to personal guarantees given by Chandra for borrowings raised by Essel Group-linked companies. Chandra has disputed the Rs 22,000 crore figure, arguing that the claims of opposing lenders amount to around Rs 3,992 crore.
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