Now Reading: Reliance Group rejects Subhash Chandra allegations as baseless
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Reliance Group rejects Subhash Chandra allegations as baseless
Mukesh Ambani-led Reliance Group on Friday rejected allegations by Essel Group chairman Subhash Chandra against its media entities, calling them 'baseless'. A Reliance spokesperson said the conglomerate was 'dismayed' by the remarks…
Mukesh Ambani-led Reliance Group on Friday rejected allegations by Essel Group chairman Subhash Chandra against its media entities, calling them 'baseless'. A Reliance spokesperson said the conglomerate was 'dismayed' by the remarks and strongly denied any suggestion that its media brands had been used to target individuals. The group added it continues to hold Chandra in high regard as a businessman.
The statement comes amid Chandra's personal insolvency proceedings at the National Company Law Tribunal. On Tuesday, NCLT Member (Judicial) Nilesh Sharma approved a resolution plan under which Chandra would pay Rs 6.5 crore to settle admitted claims, rejecting objections from dissenting creditors led by LIC Housing Finance. The creditors had argued that against admitted claims of around Rs 22,006.57 crore, the plan proposed only Rs 6.25 crore for creditors plus Rs 25 lakh for process costs.
Chandra disputed that figure on Thursday, saying the total claim against him as a personal guarantor was only Rs 3,992 crore. He said he had not borrowed the money and that borrowing entities had repaid Rs 43,000 crore so far. The insolvency matter will now return to the original division bench for a formal order under Section 419(5) of the Companies Act, 2013.
Indian Opinion Analysis
The dispute underscores a common tension in personal insolvency cases where a guarantor faces claims far exceeding the debt they personally guaranteed. Under the Insolvency and Bankruptcy Code, 2016, a personal guarantor's liability is limited to the guarantee deed, but creditors often bundle related corporate debts into the claim. The NCLT's majority approval of a Rs 6.5-crore settlement against a Rs 22,000-crore claim suggests the tribunal accepted that Chandra was not the primary borrower. The next step is the formal order from the original bench, which will set a precedent for how guarantor liability is treated in high-value insolvencies. Watch for whether dissenting creditors appeal to the National Company Law Appellate Tribunal.
Source: english.mathrubhumi.com
This brief was synthesised by AI from the source linked above.
