Subhash Chandra says Essel Group repaid Rs 43,000 crore of Rs 45,000 crore dues

MUMBAI: Subhash Chandra is fighting back with numbers. The founder of the Essel Group has rejected what he described as misleading claims surrounding recent proceedings before the National Company Law Tribunal (NCLT), saying the group has repaid around Rs 43,000 crore of its approximately Rs 45,000 crore in liabilities.

In a statement, Chandra said the financial difficulties faced by the group began with an asset-liability mismatch on 24 January 2019. He said he had subsequently acknowledged the group’s mistakes and committed to repaying its obligations.

According to Chandra, assets belonging to his family were sold to meet the group’s commitments. He said his personal assets were also sold, the family’s home was mortgaged and the group even considered selling the company as part of efforts to repay lenders.

Chandra said approximately Rs 2,000 crore remains outstanding, with the amount tied up in certain companies because of issues concerning their assets and liabilities.

Addressing the recent NCLT proceedings, he said the matter relates specifically to personal guarantees he had provided to certain lenders. He disputed reports referring to claims of around Rs 2,000 crore, saying the total claims submitted were actually closer to Rs 3,900 crore.

He questioned how claims could total Rs 3,900 crore when the group’s overall liabilities had originally stood at around Rs 45,000 crore and approximately Rs 43,000 crore had already been repaid.

Chandra further claimed that some lenders who had already been paid in full had nevertheless submitted claims before the NCLT. He also said claims worth around Rs 2,000 crore were made by lenders whose personal guarantees had not been invoked.

According to Chandra, the resolution professionals accepted the claims and the group has since settled around Rs 620 crore. He added that borrowing entities within the group have offers worth around Rs 1,100 crore pending with lenders.

“All the entities of our group are committed to repaying every single rupee,” Chandra said, adding that repaying money owed to others remained a principle he had been taught by his elders.

He also pointed to money that the group is itself owed, including pending infrastructure-related payments from state governments and proceeds expected from the sale of certain properties. He said these funds were being pursued as part of efforts to settle the remaining obligations.

The Essel Group founder also rejected claims about his personal wealth, particularly an assertion that he had a net worth of around Rs 45,000 crore in 2017 before later declaring substantially lower assets.

Chandra said the figure was apparently derived from the market capitalisation of the group rather than his personal wealth.

He pointed to the asset declaration he made when he became a Rajya Sabha member in 2016, saying his declared net worth at the time was around Rs 39 crore, along with approximately Rs 60-70 lakh.

“If I was declaring a net worth of around Rs 39 crore and Rs 60-70 lakh in 2016, how could it become Rs 45,000 crore in 2017?” he asked.

Chandra also called for an independent audit of the group’s borrowing and repayments. He urged the banking system, the finance ministry and banking secretary to appoint an independent auditor to establish how much the group had borrowed when it first defaulted and how much it had repaid since.

He argued that such an exercise would allow the financial record to speak for itself.

Chandra said his current personal financial position was substantially different from the wealth associated with him during the peak of his business career. He claimed he now has around Rs 6.5 crore, along with a small residential property, part of which he has rented out.

Despite the financial setbacks, he said he had no regrets and intended to rebuild his business career.

“I am a pioneer. I know how to do good work and build new businesses. I will continue to do so,” Chandra said.

He said he was also exploring a business arrangement with a friend in Switzerland involved in investments and planned to share further details in the coming week. He added that he was considering borrowing Rs 2-4 crore from his family to invest in startups and other ventures with growth potential.

Chandra said his broader aim was to rebuild the success he had achieved earlier in his career, which he said had helped create employment for around 8,000 families and contributed to the Indian economy.

Reflecting on his career, he claimed that he had paid around Rs 60,000-70,000 crore in interest to the financial system over five decades of working.

The entrepreneur, who began his journey with Rs 17 and eventually became one of India’s wealthiest individuals, ended his statement by asking people not to rely on claims circulating on WhatsApp and social media without checking the facts.

Chandra said he was willing to answer questions directly and urged stakeholders to examine the group’s borrowing and repayment record independently. His message was clear: the financial difficulties may have reshaped his fortunes, but he intends to make another start.