Reliance Group rejects Subhash Chandra’s allegations against media entities

Reliance Group has rejected allegations by Essel Group chairman Subhash Chandra against its media entities as baseless. The denial comes amid Chandra’s personal insolvency proceedings, where an NCLT member approved a settlement plan involving Rs 6.5 crore against admitted creditor claims

New Delhi: Mukesh Ambani-led Reliance Group on Friday refuted allegations by media baron Subhash Chandra against its media entities, terming them “baseless”. In a statement, Reliance Group said it has noted with dismay the baseless remarks by Essel Group chairman Subhash Chandra. “We strongly deny the allegations and insinuations against the media entities that are a part of the Reliance Group,” a Reliance spokesperson said.

Reliance Group, which owns several media assets, said its media brands “have never been used to attack anyone, nor will they ever be”. “We hold Subhash Chandra in high regard as a businessman and entrepreneur. We wish him well,” the spokesperson said.

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The denial comes amid a recent opinion/order by a third member of an NCLT bench, where Subhash Chandra is facing personal insolvency. On Tuesday, the NCLT Member (Judicial) Nilesh Sharma, ruling as a third member, had approved the plan under which Chandra will pay just Rs 6.5 crore to settle admitted creditor claims.

Earlier, two members of the National Company Law Tribunal had given a split verdict, following which the President of the forum had appointed Sharma as a third Member in regard to the difference of opinion.

Sharma rejected the claims of the dissenting creditors led by LIC Housing Finance, which had argued that the payout was “unviable and unlawful”. It contended that against admitted claims of approximately Rs 22,006.57 crore, the repayment plan proposed payment of only Rs 6.25 crore to creditors and Rs 25 lakhs towards process costs.

On Thursday, Chandra issued a statement, saying the total claim against him in the personal insolvency proceedings is only “Rs 3,992 crore”, for which he was only a personal guarantor and not the borrower.

Reacting to dissenting creditors’ claims of Rs 22,000 crore against him, Chandra said he “has not borrowed any money from any lender”. “Total claim against Subhash Chandra as a personal guarantor, in the personal insolvency proceedings, is only Rs 3,992 crore by the objectors of the plan and not Rs 22,000 crore,” he said.

Out of which, a claim of Rs 620 crore has been settled and a further Rs 1,063 crore offered to be paid by the borrower entities. “The borrowing entities for whom Chandra has provided personal guarantees have till date repaid Rs 43,000 crore,” the statement said, adding that “the borrowing entities have assured to settle any other amount which might be left”. The matter will now go back to the original division bench for a formal order in line with the majority opinion, as required under Section 419 (5) of the Companies Act, 2013.