A new settlement proposal has emerged regarding the personal guarantee of Essel Group chairman Subhash Chandra concerning a loan from LIC Housing Finance. According to sources, four borrowing companies have offered to pay LIC Housing Finance 100% of the outstanding principal plus 10% interest.
This offer comes amid Subhash Chandra's objections to the wide media coverage on social networks and other platforms regarding the mass write-off of personal debts, which related to a claim of 22,006 crore rupees that received a 99.97% discount from the NCLT. Chandra insisted that the matter should not be presented as a mass write-off of personal debts. He emphasized that he personally did not borrow money from creditors but acted only as a personal guarantor for companies associated with the Essel Group.
This dispute relates to loans taken by companies for which Subhash Chandra served as a personal guarantor. Vasant Sagar Properties Limited and Pan India Infraprojects Private Limited collectively borrowed 500 crore rupees from LIC Housing Finance Limited. Additionally, Digital Subscriber Management and Consultancy Services Private Limited and Spirit Infrapower Project received loans totaling 480 crore rupees.
Sources indicate that these four companies submitted a package of settlement proposals to LIC Housing Finance. Under this proposal, they are prepared to repay 100% of the principal amount with an accrual of 10% interest. These same companies were those whose debts were secured by Subhash Chandra's personal guarantee. Subhash Chandra previously stated that the figure of 22,006 crore rupees reflects the claimed claim during the NCLT proceedings, not his personal outstanding debt. He clarified that a demand for 21,696 crore rupees was approved, while the total sum of claims from creditors opposing the settlement plan amounted to about 3,992 crore rupees. Of this amount, 620 crore rupees had already been settled, leaving approximately 3,372 crore rupees.
Subhash Chandra also reported that the borrowing companies had offered to pay about 1,113 crore rupees to several dissenting creditors, and negotiations with these creditors are ongoing. Currently, the new proposal presented to LIC Housing Finance involves the payment of 100% of the principal with 10% interest from all four companies. The future of the situation will depend on the progress of these settlement proposals and the outcomes of current negotiations with the objecting creditors.