The companies concerned have proposed settlement in the LIC Housing Finance loan case related to the personal guarantee of Essel Group founder Subhash Chandra. According to sources, the companies are ready to repay 100 percent of the outstanding principal amount and 10 percent interest on it.
Subhash Chandra Personal Guarantee Case: A new development has come to light in the LIC Housing Finance Loan case related to the personal guarantee of Essel Group founder Subhash Chandra. According to sources related to the matter, four loan taking companies have proposed settlement to LIC Housing Finance Limited. Under the proposal, the companies are ready to repay the entire outstanding principal amount and pay 10 percent interest on it.
This development has come to light at a time when, after a decision of the National Company Law Tribunal (NCLT) a few days ago, the matter of personal guarantee of Subhash Chandra and loan related to Essel Group was again in the news. With the new settlement proposal, efforts to resolve this dispute through dialogue are likely to intensify.
Four companies gave settlement proposal
According to sources related to the matter, the companies which had taken loan from LIC Housing Finance, have now proposed to repay the outstanding amount. These companies say that they are ready to settle the loan with 100 percent principal amount and 10 percent interest. Vasant Sagar Properties Ltd and Pan India Infraprojects Pvt Ltd had taken loans of about Rs 500 crore from LIC Housing Finance.
Apart from this, Digital Subscriber Management and Consultancy Services Private Limited and Spirit Infrapower Project had also taken loans of about Rs 480 crore from the company. Subhash Chandra was involved as a personal guarantor in the loan related matters of all these companies. Therefore, after the settlement proposals from the companies came forward, the action related to their personal guarantee has also become important.
What is the matter of personal guarantee of Subhash Chandra?
This controversy escalated further when data related to loans and haircuts came to light in the NCLT proceedings. Subhash Chandra had tried to clarify in this case that the entire loan shown in his name is not his personal loan. His argument was that he had not personally taken the money from these lenders. He became the personal guarantor only for the loan taking companies linked to Essel Group. Therefore, it is not appropriate to directly attribute the debts of companies to their personal dues.
What was said on the claim of Rs 22,006 crore?
Chandra also said that the figure of Rs 22,006 crore represents the total claims filed during the proceedings. This should not be considered as his personal outstanding debt. According to him, claims worth about Rs 21,696 crore were approved. The total claims of lenders opposing the payment plan were around Rs 3,992 crore.
Of these, claims worth about Rs 620 crore had already been settled, leaving an amount of about Rs 3,372 crore left. According to Chandra, the borrowing companies had also offered to pay about Rs 1,113 crore to some of the lenders who had raised objections and talks were ongoing between the parties concerned.