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HDFC Bank weighs NCLAT appeal as NCLT clears Subhash Chandra’s Rs 6.5 Crore payout

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HDFC Bank weighs NCLAT appeal as NCLT clears Subhash Chandra’s Rs 6.5 Crore payout

Largest private sector lender HDFC Bank on Thursday said it had voted against the resolution plan for Subhash Chandra , which was subsequently approved by the majority of creditors, and is now exploring filing an appeal against the National Company Law Tribunal (NCLT) order before the National Company Law Appellate Tribunal (NCLAT). 2% of the total stated claim amount. The Bank inherited this facility which was previously provided by HDFC Limited,” the lender said in a statement. “HDFC Bank had opposed and voted against this resolution, which was approved by the majority. The Bank is exploring filing an appeal at the NCLAT,” it added. 5 crore to settle claims of creditors in his personal insolvency proceedings . 57 crore, making the proposed payout a fraction of the claims admitted against the promoter. 2 per cent figure refers to its share of the total admitted claims, and not to the recovery that the bank would receive under the resolution plan. Based on the overall admitted claims, the bank's exposure in the proceedings is understood to be around Rs 680 crore. The facility was originally provided by Housing Development Finance Corporation Ltd, or HDFC Ltd, before its merger with HDFC Bank in July 2023. The exposure subsequently became part of HDFC Bank's books following the merger. Chandra, founder of the Essel Group and promoter of Zee, had provided personal guarantees for borrowings raised by group-linked entities. As the underlying companies came under financial pressure and defaulted on their obligations, creditors sought recovery under those personal guarantees.


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