New Delhi: The approval of a personal bankruptcy resolution plan related to prominent businessman and Zee Group founder Subhash Chandra by the National Company Law Tribunal (NCLT) is stirring political controversy. Congress leader Rahul Gandhi has severely criticized the Modi government at the center for allowing a plan that resolves claims of approximately ₹22,006.57 crores with a mere payment of ₹6.5 crores.
Rahul Gandhi stated that this incident is evidence of his allegation that there are different standards for the wealthy and the common people in the country's banking system. In a social media post, he criticized the government, stating, "There are two systems in India."
He alleged that banks pressure ordinary borrowers who delay small EMI payments, while the wealthy receive significant concessions despite having large outstanding amounts. He commented that the system operates as if there is one justice for the rich and another for the rest of the people.
According to the plan approved by the NCLT, lenders will receive only ₹6.25 crores against the accepted claims of approximately ₹22,006.57 crores related to Subhash Chandra, with an additional ₹25 lakhs allocated for bankruptcy process expenses. This limits the recovery for lenders to nearly 0.03 percent, with a haircut of about 99.97 percent.
However, reports indicate that the claims in this case are not for the ₹22,000 crores borrowed personally by Subhash Chandra, but rather relate to personal guarantees he provided for loans taken by companies belonging to the Essel Group. Despite objections from several lenders regarding this substantial haircut, the NCLT approved the plan. In light of this development, there is renewed intense discussion regarding the banking system and the enforcement of bankruptcy laws.
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