Rs 6 Cr Fine For Rs 22,000 Cr Loan: Clarity Inside

The shocking case of leading businessman, Subash Chandra has grabbed all the attention in India after recent reports claimed that he defaulted ₹22,000 crore loans and got away with a fine of just ₹6 crore.

However, the latest clarification from the concerned authorities and also the individual himself are extremely different in nature as it appears that these reports are false by comparison.

Under the NCLT-approved settlement, around ₹6.25 crore is recoverable from Chandra’s personal estate, while the principal borrowers remain separately liable. The plan received 80.81% creditor approval, despite opposition from some major lenders.

The widely cited 99.97% reduction relates specifically to the claims recoverable from Chandra as personal guarantor which is not a ₹22,000 crore waiver of the underlying corporate debt.

It was earlier speculated that he got away with a fine of rupees, just ₹6 crore over a default of ₹22,000 crore. But this is not the case in reality. They mentioned the figure of ₹6 crore is to be recovered from his personal account while the rest will be recovered from other means.

The plan also envisages around ₹1,494 crore in recoveries from the principal borrowers. Chandra has separately claimed that the companies borrowed around ₹45,000 crore and have repaid about ₹43,000 crore since 2019. But this has not been officially established by the authorities yet.

For now, we have to patiently wait and see where this business episode would ultimately end up as there are a lot of twists and turns happening on the same.