The National Company Law Tribunal (NCLT) has approved a repayment plan under which ₹6.25 crore will be allocated to creditors against admitted claims of approximately ₹22,006.57 crore. The plan implies a recovery of about 0.028% of the original claims and a haircut of nearly 99.97%.
“With regard to the referred NCLT matter, HDFC Bank admitted claim was only 3.2% of the total stated amount. Bank inherited this facility which was previously provided by HDFC Limited,” an HDFC Bank spokesperson told CNBC-TV18.
“HDFC Bank had opposed this settlement and had voted against this resolution, which was approved by the majority. The Bank is exploring an appeal at NCLAT,” the spokesperson added.
HDFC Bank said the facility was inherited from HDFC Limited following the merger of the two entities and had previously been provided for.
Several financial institutions had opposed the repayment plan, raising concerns over the negligible recovery, verification of claims and the participation of entities they alleged were associated with Chandra in the voting process.
The NCLT order followed a difference of opinion between two members of the tribunal over the repayment plan. A third member, Nilesh Sharma, was appointed to decide the points of disagreement and, on August 25, favoured approval of the plan. The matter will now be placed before the original bench for a formal order giving effect to the majority opinion.The insolvency proceedings against Chandra originated from a ₹170 crore loan extended to Vivek Infracon, for which Chandra had stood as personal guarantor. Indiabulls Housing Finance, now known as Sammaan Capital, moved the NCLT in 2022 after the loan turned bad. The plea was admitted in 2024.
