Mumbai: Breaking his silence on the controversy surrounding an alleged Rs 22,000 crore loan waiver, Essel Group founder Subhash Chandra has categorically denied the claims, stating that deliberate attempts are being made to tarnish his public image. Asserting that the conglomerate has already cleared the vast majority of its financial obligations, Chandra has called for a transparent, independent audit into the group’s debt records.
Chandra urged the banking system and Union Finance Minister Nirmala Sitharaman to appoint an independent auditor to thoroughly investigate the exact quantum of loans taken, amounts repaid, and the specific areas where defaults occurred.
Essel Group Debt Repayment Status
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Total Initial Debt: ~Rs 45,000 crore
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Total Amount Repaid: ~Rs 43,000 crore
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Current Pending Debt: ~Rs 2,000 crore
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Claims Already Settled: Rs 620 crore
Addressing the financial crisis that became public around January 24, 2019, Chandra attributed the initial distress to a severe asset-liability mismatch. He recalled issuing an open letter to the banking system at the time, acknowledging his missteps while committing to full repayment. To honor these obligations, he stated that the promoters liquidated family and personal assets, mortgaged a private residence, and even initiated the sale of Zee Entertainment.
The outstanding Rs 2,000 crore debt remains stuck primarily due to delayed payments from various state governments regarding ongoing infrastructure projects. Chandra confirmed that the group intends to raise the remaining funds by liquidating additional assets.
Clarifying the ongoing insolvency proceedings, the Essel Group founder stated that the National Company Law Tribunal (NCLT) actions stem from personal guarantees provided to certain banks, rather than personal loans. Recently, the NCLT approved a repayment plan of approximately Rs 6.5 crore against admitted claims totaling Rs 22,006.57 crore. Dissatisfied with this resolution, HDFC Bank has announced its intention to appeal the tribunal’s decision.