HDFC Bank May Approach NCLAT Over Subhash Chandra’s ₹6.25 Cr Repayment Plan

HDFC Bank is considering challenging an NCLT-approved repayment plan for Essel Group founder Subhash Chandra before the National Company Law Appellate Tribunal (NCLAT), according to a CNBC-TV18 report.

Under the approved plan, ₹6.25 crore will be allocated to creditors against admitted claims of approximately ₹22,006.57 crore. This translates into a recovery of around 0.028% of the claims and a haircut of nearly 99.97%, according to the report.

HDFC Bank said it had opposed the settlement and voted against the resolution, which was approved by the majority of creditors.

HDFC Bank Weighs NCLAT Appeal

“With regard to the referred NCLT matter, HDFC Bank admitted claim was only 3.2% of the total stated amount,” an HDFC Bank spokesperson told CNBC-TV18.

The bank said it had inherited the facility from HDFC Ltd following the merger of the two entities. The loan facility had previously been provided for, according to the lender.

“HDFC Bank had opposed this settlement and had voted against this resolution, which was approved by the majority. The Bank is exploring an appeal at NCLAT,” the spokesperson told the news publication.

Several financial institutions had also opposed the repayment plan, citing concerns over the low recovery, verification of claims and the participation of entities they alleged were linked to Chandra in the voting process.

How Subhash Chandra’s Insolvency Case Reached NCLT

The NCLT's approval followed a difference of opinion between two members of the tribunal over Chandra’s repayment plan. A third member, Nilesh Sharma, was appointed to decide the points of disagreement and favoured approval of the plan on August 25.

The matter will now return to the original bench for a formal order giving effect to the majority opinion.

The insolvency proceedings against Chandra originated from a ₹170 crore loan to Vivek Infracon, for which Chandra had stood as personal guarantor. Indiabulls Housing Finance, now known as Sammaan Capital, approached the NCLT in 2022 after the loan turned bad.

The insolvency plea was subsequently admitted in 2024. The repayment plan has since faced objections from lenders over the amount proposed to be recovered against the admitted claims.