Borrowers will settle ₹4,262 crore after reconciliation: Dr Subhash Chandra

Dr Subhash Chandra has issued a detailed clarification regarding the personal insolvency proceedings linked to guarantees given by him, saying he had not personally borrowed any money and that the outstanding claims relate to funds raised by multiple borrowing entities.

The statement, issued by his office on August 30, came in response to social-media posts carrying the hashtag #PaisaWapasKaro. Dr Chandra said there had been a “wrong perception and understanding” of the matter.

According to the statement, Dr Chandra signed personal guarantees aggregating ₹22,000 crore. Of these, guarantees worth around ₹4,800 crore were signed when funds were borrowed by the respective entities. The remaining guarantees, it said, were signed after defaults had occurred.

“Borrowing by me, Dr Subhash Chandra: ₹0,” the statement said, stressing that the underlying loans were taken by various companies and not by Dr Chandra in his personal capacity.

The statement also presented a lender-wise account of the claims submitted in the personal insolvency proceedings initiated by Indiabulls Housing Finance Ltd.

According to the figures shared by Dr Chandra’s office, lenders covered in the statement had collectively disbursed ₹4,808 crore to the borrowing entities. Of this, the borrowers had repaid ₹3,803 crore, leaving what the statement described as a balance of ₹998 crore.

However, claims totalling ₹5,311 crore were filed against Dr Chandra as the personal guarantor. Following the settlement or payment of claims amounting to ₹1,049 crore, the remaining claims stood at ₹4,262 crore, the statement said.

Indiabulls Housing Finance and the Axis Bank Group were listed as having settled or been paid. The other lenders named in the statement included HDFC Group, Canara Bank, Edelweiss, Franklin Templeton, IndusInd Bank, LIC Housing Finance, RBL Bank and Union Bank.

Dr Chandra maintained that the difference between the amount described as payable and the claims submitted by lenders would need to be reconciled between the lenders and the respective borrowing entities.

He further said he had discussed the matter with the borrowers and had received assurances that the remaining ₹4,262 crore would be settled after reconciliation with the lenders.

The statement also referred to the repayment plan prepared by the resolution professional appointed in the matter. It said the plan considered Dr Chandra’s available assets and funds. According to the statement, assets valued at ₹39.08 crore and declared in Parliament in 2016 had declined to ₹31.79 crore. This included a mortgaged residential property valued at ₹25 crore, leaving liquid assets of ₹6.79 crore.

Dr Chandra’s office added that the borrowing entities had also raised money from foreign funds, domestic funds, non-banking financial companies and corporates. It claimed that most of these borrowings had either been settled or were in the process of being settled.

Dr Chandra urged lenders to engage directly with the borrowing entities, reconcile the outstanding accounts and recover the amounts due from them.