Dr Subhash Chandra Responds to Claims: ‘Don’t Be Misled, Verify the Facts’

Amid claims and discussions about him circulating on social media and other platforms over the past two days, Dr Subhash Chandra, Founder and Chairman of the Zee Group, has issued a video message presenting his side of the story.

Addressing the ongoing proceedings before the National Company Law Tribunal (NCLT), the group’s liabilities, repayment of debt and allegations concerning his personal wealth, Chandra said that the group once had liabilities of approximately Rs 45,000 crore, of which around Rs 43,000 crore has already been repaid.

He urged people not to believe claims circulating about him on social media without verifying their authenticity.

In his video message, Chandra said that over the past two days, attempts had been made to portray him alongside individuals who had, in his words, exploited the country’s financial system and used borrowed money to acquire personal luxuries such as mansions and aircraft.

Recalling the financial crisis faced by the Essel Group, Chandra said the difficulties began on January 24, 2019, because of an asset-liability mismatch. At the time, he wrote an open letter addressed to stakeholders, the country’s financial system and the banking system, acknowledging that he had made certain mistakes.

Chandra said he had publicly accepted those mistakes and committed to repaying the money owed by him and the group’s borrowing entities.

According to him, the group subsequently sold assets, including family and personal assets, to meet its repayment obligations. He said even his house was mortgaged as part of these efforts.

Chandra claimed that some people were uncomfortable with the example being set by the Essel Group and his family in repaying creditors by selling their own assets.

‘Rs 43,000 crore out of Rs 45,000 crore repaid’

Addressing the group’s liabilities, Chandra said the Essel Group had total liabilities of approximately Rs 45,000 crore at the time of the crisis.

“Of this, we have repaid approximately Rs 43,000 crore,” he said.

He added that the remaining approximately Rs 2,000 crore relates to certain companies where issues involving asset-liability mismatches resulted in payments being held up.

Chandra also addressed the proceedings before the NCLT, saying they arose because he had provided personal guarantees to certain lenders.

He claimed that some lenders had filed claims before the NCLT even though their dues had already been repaid.

Chandra disputes Rs 22,000 crore claims figure

Chandra also disputed reports suggesting that claims worth Rs 22,000 crore were involved in the proceedings.

According to him, the total claims were approximately Rs 3,900 crore rather than Rs 22,000 crore.

He questioned how claims of approximately Rs 3,900 crore could arise when, according to him, Rs 43,000 crore had already been repaid against the group’s original liabilities of approximately Rs 45,000 crore.

Chandra further claimed that approximately Rs 2,000 crore of the claims came from parties that had never invoked his personal guarantees but had nevertheless submitted claims.

He said the resolution professional appointed by the court had admitted these claims.

According to Chandra, claims worth approximately Rs 620 crore have since been settled, while the group’s borrowing entities have offered lenders approximately Rs 1,100 crore.

He reiterated that the group entities remain committed to repaying every amount legitimately owed to lenders.

‘We also have money stuck elsewhere’

Chandra said the group itself has receivables that remain outstanding, including money relating to infrastructure projects that is due from state governments.

He added that one or two properties still need to be sold.

Referring to the family’s investment in Zee, Chandra said the family pooled its resources to regain a 20 per cent stake in the company.

Chandra rejects claims about his personal wealth

Chandra also addressed claims surrounding his personal net worth.

He said allegations that he possessed substantial personal wealth when the loans were taken but subsequently declared assets of only around Rs 31 crore were based on a misconception.

According to Chandra, the market capitalisation of group companies had at some point been incorrectly treated as his personal wealth, resulting in claims that his net worth stood at around Rs 45,000 crore in 2017.

He pointed to the declaration he made when he became a Rajya Sabha member in 2016.

According to Chandra, his declared net worth at the time was approximately Rs 39 crore and Rs 60-70 lakh.

He questioned how his personal net worth could have risen from around Rs 39 crore in 2016 to Rs 45,000 crore in 2017.

Calls for an independent audit

Chandra called upon the banking system, the Finance Minister and banking authorities to appoint an independent auditor to examine the matter.

He suggested that the auditor should determine two things: the Essel Group’s total borrowings when it first defaulted in the financial markets and the amount it has repaid since then.

Chandra said such an exercise would establish the facts surrounding the group’s debt repayment.

‘I have no regrets’

Speaking about his current financial position, Chandra said he was addressing people normally and without regret despite having lost much of what he once owned.

He claimed that approximately Rs 6.5 crore of his remaining money would also have to be paid under the current plan.

Chandra said he owns a small residential property, part of which has been rented out, and that the rental income helps cover his expenses.

However, he said he had no regrets and intended to build again.

“I will earn again. I am a pioneer. I know how to do good work and create new businesses, and I will continue to do so,” he said.

Chandra also revealed that he is exploring a new plan with a friend in Switzerland who works in investments. He said he expects to provide further details about the initiative within the next couple of weeks.

He added that he may borrow a few crore rupees from his family and invest the money in a startup or another venture with growth potential.

Reflecting on his entrepreneurial journey, Chandra said he had started with Rs 17 and had, at one point, been counted among the country’s ten richest individuals.

He also said that during his 50-52 years of working life, he estimated that he had paid between Rs 60,000 crore and Rs 70,000 crore in interest to the financial system, while building businesses that provided employment to thousands of families and contributed to the Indian economy.

‘Verify what you read about me’

Concluding his message, Chandra urged people not to be influenced by unverified WhatsApp messages or social media posts concerning him.

He asked people to verify claims before accepting them as fact and invited individuals with questions to contact him directly.

Chandra said he remained confident that attempts to damage his reputation would not ultimately succeed because the truth would prevail.

He thanked viewers for listening to his statement and for the support they had extended to him.