NCLT seeks CBI response in Subhash Chandra’s repayment plan case.
CBI is probing alleged financial irregularities linked to his loan guarantees.
NCLAT will hear Chandra’s plea against the five-member NCLT bench.
NCLT Seeks CBI Response In Subhash Chandra Repayment Plan
The tribunal has sought the CBI’s response after noting that its investigation could affect the insolvency proceedings. The case involves Subhash Chandra’s liability as a personal guarantor for loans linked to the Essel and Zee groups
Summary
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The National Company Law Tribunal (NCLT) has sought a response from the Central Bureau of Investigation (CBI) in the case involving Zee founder Subhash Chandra’s repayment plan, according to a Mint report.
The NCLT’s five-member bench has given the CBI four weeks to respond and deferred the hearing. The bench said the CBI’s investigation could have a bearing on the proceedings. Chandra’s side opposed making the CBI a party to the case.
The CBI has registered an FIR against Chandra and others following a complaint by LIC Housing Finance Ltd (LICHFL) over an alleged ₹1,322-crore loss. The case involves two loan facilities totalling ₹980 crore, for which Chandra had provided personal guarantees.
CBI Probe And NCLT Case
LICHFL has alleged that inflated net-worth certificates were used to secure the loans, which later turned into defaults. The CBI is investigating allegations including cheating, criminal conspiracy and criminal breach of trust.
The NCLT bench also raised concerns about continuing the matter as a special five-member bench, saying it could affect the tribunal’s regular functioning. The observations came days after the Supreme Court raised concerns over infrastructure and facilities at NCLT benches.
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Separately, the National Company Law Appellate Tribunal (NCLAT) admitted Chandra’s plea challenging the constitution of the five-member NCLT bench. The matter will be heard on 28 September.
₹6.5 Crore Repayment Plan
At the centre of the dispute is Chandra’s repayment plan, which proposed payment of ₹6.5 crore, including ₹6.25 crore to creditors and ₹25 lakh towards insolvency process costs. The plan received 80.81% support from creditors by value.
NCLT member Nilesh Sharma had approved the plan and held that it would also bind creditors who voted against it. However, a five-member special bench later said his 25 August order could not be given effect as it did not represent the majority view of the tribunal.
The five-member bench has also restrained Chandra from selling or transferring properties held by him, directly or indirectly, while the matter remains pending. Creditors opposing the plan include LICHFL, IDBI Trusteeship Services, HDFC Bank, Axis Bank, Canara Bank, Union Bank of India (UK) and RBL Bank.
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