Reliance Group Denies Allegations Made by Essel Group Chairman Subhash Chandra

Mumbai: The Reliance Group stated in an exchange filing on Friday that it noted with dismay baseless remarks made by Essel Group Chairman Subhash Chandra, strongly denying allegations that its media entities were used to target anyone.

"We strongly deny the allegations and insinuations against the media entities that are a part of the Reliance Group. Our media brands have never been used to attack anyone, nor will they ever be," a Reliance spokesperson said in a media statement. The group added that it holds Chandra in high regard as a businessman and entrepreneur and wishes him well.

The statement came after Chandra alleged on Thursday that certain media platforms were circulating incorrect information about his personal insolvency matter before the National Company Law Tribunal (NCLT). Chandra insisted that reports regarding the proceedings presented an inaccurate picture, stressing that he acted solely as a personal guarantor and had not personally borrowed funds from any lender.

Chandra said that while claims filed in the NCLT proceedings totalled around Rs 22,006 crore, with Rs 21,696 crore admitted, the claims of objecting lenders stood at Rs 3,992 crore. He stated that Rs 620 crore of that amount has been settled, leaving Rs 3,372 crore outstanding.

Government sources separately clarified the recovery process, rejecting reports that banks took a 99.97 per cent haircut on over Rs 22,000 crore of loans. They noted that the Rs 22,006 crore figure does not represent funds personally borrowed by Chandra, but claims admitted against him as a personal guarantor for debts taken by Essel- and Zee-linked firms.

According to government sources, the primary borrowing companies remain liable for their dues. The repayment plan envisages approximately Rs 1,494 crore in payments by the principal borrowers in addition to Rs 6.25 crore from Chandra personally, while lenders maintain the right to pursue recovery against company assets.

The NCLT approved the repayment plan with 80.81 per cent support from creditors. Several institutions, including LIC Housing Finance, HDFC Bank, Axis Bank, Canara Bank, RBL Bank, and Union Bank, opposed the plan, raising concerns over Chandra's disclosed net worth falling from Rs 45,888 crore in 2017 to around Rs 31.79 crore.