New Delhi, 27 August (H.S.): The Congress has questioned the National Company Law Tribunal’s (NCLT) approval of a ₹6.5-crore repayment proposal in the personal insolvency resolution process of media entrepreneur Subhash Chandra against alleged admitted claims of around ₹22,006.57 crore. Congress general secretary and Rajya Sabha MP Jairam Ramesh described the decision as a mockery of the Insolvency and Bankruptcy Code (IBC), 2016, saying it was “not a haircut, but a shave.”

In a post on social media platform X on Thursday, Jairam Ramesh explained that when a debtor repays an amount substantially lower than the outstanding dues, the loss borne by creditors is commonly referred to as a “haircut” in financial terminology. Commenting on the repayment plan approved in the Subhash Chandra case, he said, “This is not merely a haircut; it is actually a shave and a complete mockery of the Insolvency and Bankruptcy Code, 2016.”

The NCLT has approved a ₹6.5-crore repayment plan for settling the approximately ₹22,006.57 crore in admitted claims of creditors in Subhash Chandra’s personal insolvency resolution process. Under the plan, around ₹6.25 crore is to be distributed among the creditors, while ₹25 lakh has been earmarked towards the costs of the resolution process.

Under the approved proposal, creditors would have to accept a reduction of approximately 99.97 per cent against the admitted claims. Some creditors, including LIC Housing Finance, had raised objections to the proposal.

Earlier, a two-member NCLT Bench had differed on the matter. Following the disagreement between the two members, the tribunal’s president appointed Judicial Member Nilesh Sharma as the third member to resolve the issue. Nilesh Sharma approved the repayment plan on Tuesday under Section 114 of the IBC.

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Hindusthan Samachar / Jun Sarkar