The National Company Law Tribunal (NCLT) has approved a repayment proposal for Zee Group founder Subhash Chandra that allows creditors to recover about ₹6.5 crore against admitted claims of ₹22,006.57 crore. The ruling, issued on August 27, 2026, results in lenders facing a 99.97% haircut on their dues, according to livemint.com.
The repayment plan was cleared by the NCLT after deliberations by the division bench, which is expected to issue a formal order reflecting the majority view. The decision follows challenges from lenders, including HDFC Bank, but the tribunal has now sanctioned the proposal, effectively concluding the insolvency resolution process for Subhash Chandra's group, as reported by livemint.com.
This outcome highlights the severe losses creditors face in high-profile insolvency cases in India, where admitted claims vastly exceed recoveries. The haircut of 99.97% is among the steepest seen in corporate insolvency resolutions, underscoring the risks lenders bear in distressed asset recoveries. The case also reflects ongoing challenges in India's insolvency framework and the difficulties in recouping dues from large corporate defaulters, according to livemint.com.
The case will now return to the original division bench for the issuance of the formal order that will finalize the repayment plan. This marks a significant closure point for the insolvency proceedings related to Subhash Chandra's group, with creditors set to recover just 3 paise for every ₹100 owed, as detailed by livemint.com.