4 min readMumbaiUpdated: Aug 28, 2026 03:02 PM IST
LIC Housing Finance Limited (LICHFL) has said it had sanctioned financial facilities under two loan accounts in which Essel Group founder Subhash Chandra is the personal guarantor, and that it continues to retain all rights over the secured assets. LICHFL reportedly had an admitted claim of Rs 1,322.39 crore in the insolvency proceedings against Chandra. Under the approved repayment plan, however, LICHFL is set to receive just Rs 38.09 lakh.
The statement comes after HDFC Bank on Thursday said it was “exploring an appeal” against an order of the National Company Law Tribunal (NCLT) approving a repayment plan submitted by Chandra in his capacity as a personal guarantor. The plan entails a substantial haircut for creditors on their admitted claims.
However, it did not refute the admitted claim mentioned in the reports. “The media reports state that LICHFL has an admitted claim of Rs 1,322.39 crore in the said proceedings, against which the repayment plan provides for payment of Rs 38.09 lakh to LICHFL,” LICHFL said in a statement.
“LICHFL continues to hold and enforce its security interest over the secured assets against which the financial facilities were granted, which have been duly charged/ mortgaged in favour of LIC HFL,” the company said.
“Accordingly, LICHFL continues to hold and retain all its rights, security interests, enforcement remedies and recovery avenues over the said secured assets in accordance with applicable provisions of law,” it said. “We clarify that the recent NCLT order pertains to the insolvency resolution process against the personal guarantor Subhash Chandra, under the Insolvency and Bankruptcy Code, 2016, and does not in any manner adjudicate, discharge, dilute or impact the corporate liabilities of the principal borrower entities in anyway,” it said.
The NCLT has approved Chandra’s proposal to pay Rs 6.25 crore against total guarantees signed for Rs 22,000 crore.
“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,” Subhash Chandra’s office said in a press statement issued on Thursday.
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HDFC Bank said its admitted claim accounted for 3.2% of the total claims and that it was inherited from erstwhile HDFC Ltd prior to the merger of the two entities. “With regard to the referred NCLT matter, HDFC Bank’s admitted claim was only 3.2% of the total stated amount. The bank inherited this facility, which was previously provided by HDFC Limited. HDFC Bank had opposed this settlement and voted against the resolution, which was approved by the majority. The bank is exploring an appeal at NCLAT,” the lender said in a statement Thursday.
The NCLT verdict saved the case from going into bankruptcy. The proceedings concern personal guarantees given by Chandra for borrowings of Essel Group-linked companies. When a promoter gives a personal guarantee for corporate loans, the lender can, subject to the applicable legal process, pursue the guarantor when the underlying borrower defaults. Chandra’s insolvency proceedings were initiated in 2024 following a petition by Indiabulls Housing Finance.
The case therefore goes beyond Zee Entertainment Enterprises. It concerns Chandra’s personal liability arising from guarantees linked to corporate debt. There is a separate corporate insolvency proceedings involving companies associated with the Essel Group, or with regulatory proceedings involving Zee Entertainment and its executives.
