Vijay Mallya has reacted to the National Company Law Tribunal’s approval of Subhash Chandra’s repayment plan, which allows the Essel Group founder to pay ₹6.5 crore against creditor claims of ₹22,006.57 crore
Mallya described the development as Indian debt resolution justice, highlighting the huge gap between the amount claimed by lenders and the amount proposed to be repaid
Chandra to Pay ₹6.5 Crore
The NCLT approved the repayment plan in Chandra’s personal insolvency case
Under the plan, ₹6.25 crore will go to creditors, while ₹25 lakh will be used for insolvency process costs
This means lenders would recover only around 0.03% of the admitted claims, representing a 99.97% reduction in the total amount claimed
Mallya’s Own Recovery Case
Mallya’s reaction comes while the Bombay High Court is examining questions about the recovery of his own bank dues
The court recently sought clarity on whether Mallya’s dues to a bank consortium had already been settled using money recovered from assets attached by the Enforcement Directorate
Mallya’s lawyer told the court that proceeds from the attached assets had been used to repay the loans
The court has asked the State Bank of India, the lead bank of the consortium, and the ED to provide an update
Mallya Had Earlier Questioned Recovery Figures
Mallya has previously questioned the figures given by the government and banks about the money recovered from him
In December 2025, he questioned why different recovery amounts were being cited in Parliament and public statements and called for an independent investigation into the figures
Chandra Says He Only Gave Guarantees
Chandra has said he never personally borrowed money from the lenders involved in the case
He said he only provided personal guarantees for loans taken by companies linked to the Essel and Zee groups
Government sources also said the companies that borrowed the money remain responsible for their loans
Around ₹1,494 crore is expected to be paid by the borrowing companies under the repayment arrangement, while ₹6.25 crore is proposed from Chandra’s personal assets
Banks Opposed the Plan
The repayment plan received 80.81% support from creditors by value
However, HDFC Bank, LIC Housing Finance, Axis Bank, Canara Bank, RBL Bank and Union Bank were among those opposing it
HDFC Bank said it expects to recover only around 3.2% of its total claim and is considering an appeal before the NCLAT
Final Order Still Pending
The approval came after a two-member NCLT bench gave different views, leading judicial member Nilesh Sharma to act as the deciding member
The matter will return to the regular NCLT bench for further directions before the plan is finally implemented
The Chandra case, along with Mallya’s ongoing recovery dispute, has renewed attention on how India’s insolvency and debt recovery system deals with large unpaid loans and personal guarantees
