NCLT approved a Rs 6.5 crore repayment plan for Zee founder Subhash Chandra against creditor dues of Rs 22,006 crore.

The plan lets Chandra settle admitted claims of around Rs 22,006.57 crore by paying just Rs 6.5 crore, a haircut of nearly 99.97% for lenders.

NCLT Member Nilesh Sharma was brought in as a third member after the original two member bench gave a split verdict on the case.

On Tuesday, he accepted the plan under Section 114 of the Insolvency and Bankruptcy Code, rejecting the objections of a group of lenders led by LIC Housing Finance, who had claimed that the proposed compensation was illegal and unfeasible.

LIC Housing Finance’s own objection centred on the numbers. Against its admitted claim of Rs 1,322.39 crore, the plan offered it just Rs 38.09 lakh, working out to roughly 0.028% of what it was owed.

The lender also argued that the Rs 6.5 crore figure in the plan was described as merely indicative rather than final, making it too uncertain to approve. The tribunal wasn’t persuaded.

It noted that the objecting creditors together held less than 20% of the total voting share, while the plan had already been approved by creditors representing 80.81% of the vote.

The NCLT also pointed to the resolution professional’s valuation, which showed Chandra’s personal assets were worth considerably less than the amount on offer.

Rejecting the plan, the tribunal said, would likely push Chandra toward bankruptcy and leave the objecting creditors worse off, not better.

Importantly, the tribunal made clear that once formally confirmed, this plan will bind every creditor under Section 115 of the IBC, including those who voted against it.

Dissenting lenders cannot pursue their original claims separately. The case will now return to the original division bench for a formal order.

It traces back to 2022, when Indiabulls Housing Finance, since renamed Sammaan Capital, first moved against Chandra over a personal guarantee tied to a Rs 170 crore loan that had turned bad.

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