NCLT approves Chandra's 6.5 crore payout to settle 22,006 crore dues

The National Company Law Tribunal has approved a repayment plan allowing media entrepreneur Subhash Chandra to settle admitted creditor claims of approximately 22,006.57 crore by paying just 6.5 crore, a reduction of nearly 99.97 percent for lenders. The decision, made on August 26, 2026, resolves Chandra's personal insolvency proceedings and has drawn criticism from political figures and reactions from other high-profile debtors.

The approval was issued by NCLT Member Judicial Nilesh Sharma, who was appointed as a third member after the original two-member bench delivered a split verdict. Sharma approved the plan under Section 114 of the Insolvency and Bankruptcy Code, dismissing objections from a group of dissenting creditors led by LIC Housing Finance. These lenders argued the proposed payout was "unviable and unlawful," noting that LIC Housing Finance alone stood to receive only about 38.09 lakh against its admitted claim of 1,322.39 crore.

The tribunal's order emphasized that the repayment plan had secured the required creditor approval, receiving 80.81 percent of the voting share at a meeting in November 2024. The objecting creditors collectively held less than 20 percent...