Loan Controversy--Subash Chandra says Mukesh Ambani tried to takeover Zee

Mumbai: Zee Group founder Subhash Chandra on Friday accused Reliance Industries Chairman Mukesh Ambani and his media network over alleged fake news reporting on him over the National Company Law Tribunal (NCLT) proceedings. In a video message aired on Zee News, Chandra who is also the Essel Group chairman, said that Ambani made attempts to “capture” Zee and is running a fake news campaign against him.

The case refers to the NCLT order approving a repayment plan for Zee Group founder under which creditors will receive a total of just Rs 6.5 crore against admitted claims of Rs 22,006.57 crore. The plan translates into a recovery of only about 0.03 per cent of the admitted claims and a haircut of around 99.97 per cent for creditors.

He said the reported portrayal of the personal-insolvency proceedings had failed to reflect the distinction between personal guarantees and the actual borrowing by group entities.

Rubbishing media coverage surrounding a Rs 22,000-crore debt figure, Chandra said the matter relates to personal guarantees he had provided to certain lenders. He said some lenders had already been repaid but still filed claims before the tribunal.

According to him the actual amount is Rs 3,900 crore. Of this, approximately Rs 620 crore in claims linked to borrowing entities had already been repaid, while a settlement offer of roughly Rs 1,100 crore remained pending before certain lenders.

Chandra said that despite reaching out directly to the Reliance Chairman, inaccurate reporting by his network regarding the NCLT matter has continued.

The Essel Group chairman said he was placing his side before the public after, according to him, a false narrative was circulated around the NCLT proceedings and the widely discussed Rs 22,000-crore figure. Chandra said he called Ambani, but there was no response. He even stated that he sent a letter to Ambani regarding the alleged fake reports on his channels.

Chandra then made a direct appeal to Mukesh, asking him to intervene and stop what he called a campaign against him and the group.

“But Mukesh 'ji', please stop the wrong propaganda against me personally and my Group. Zee is a Group company. I do not own anything in that. In fact, I do not own anything now after implementing this NCLT order,” Chandra said.

He cited extensive repayment undertaken by the Essel group since its 2019 financial stress. He urged the banking system and Finance Minister Nirmala Sitharaman to appoint an independent auditor to review the group's borrowings, defaults, and repayments.

“Rs 45,000 crore was the debt on us, on our family and on our group…We have repaid Rs 43,000 crore out of Rs 45,000 crore by selling all our assets, as I said in the press statement yesterday and this morning as well.”

Chandra said only two accounts remained and asserted that the institutions involved held sufficient assets and would not suffer any loss. “The banks and institutions involved have sufficient assets with them. They will not suffer any loss,” he said.

Chandra said he had nothing left to lose after the repayment process, but would continue to defend himself and the Essel Group if the alleged misinformation campaign persisted.

“You are troubling a person like Dr Chandra, who has nothing left now? ... I have nothing left to lose,” he said. “(On the other hand,) you have a lot to lose. I request you once again with folded hands... Please stop your people from doing all this,” added Dr Chandra.

He said he would defend himself if required, while offering his good wishes to Mukesh Ambani and his family. “I pray that God keeps you happy, keeps your family happy, and that you move further ahead. May you become number one in the world financially. That would make me happy as an Indian. But please stop doing all this in India,” he added.

Meanwhile, two creditors-HDFC Bank and LIC Housing Finance would be challenging the NCLT order that had accepted Chandra’s repayment offer of Rs 6.5 crore to clear personal guarantee liabilities amounting to creditors’ claims of Rs 22,006 crore in National COmpany Law Tribunal (NCLAT). However Indiabulls Housing Finance Ltd, now known as Samaan Capital, has decided not to challenge the NCLT’s approval of Chandra’s repayment plan.

According to Samaan Capital, the facilities extended to various entities related to Chandra were “secured in nature”, and added that the housing finance company, through its enforcement and recovery measures, had collected an amount exceeding the amount originally disbursed.

Indiabulls Housing Finance was the financial creditor that triggered Chandra’s personal insolvency proceedings in 2022 over a Rs 170-crore loan to Vivek Infracon, which Chandra had personally guaranteed. The NCLT admitted the insolvency proceedings against Chandra in April 2024.