New Delhi, Oct 7 (SocialNews.XYZ) In a major development in the LIC Housing Finance dispute involving Essel Group founder Subhash Chandra's personal guarantee, the group companies concerned have proposed a settlement offering repayment of 100 per cent of the outstanding principal amount along with 10 per cent interest to it.
According to reliable sources, the companies that had originally availed these loans have now submitted settlement proposals to LIC Housing Finance for repayment of their dues. The most significant aspect of these proposals is that the borrowers have agreed to repay the entire outstanding amount, including interest, sources said.
Essel Group associated companies Vasant Sagar Properties Limited and Pan India Infraprojects Private Limited had borrowed Rs 500 crore from LIC Housing Finance Limited. In addition, Digital Subscriber Management and Consultancy Services Private Limited and Sprit Infrapower Project had also taken loans amounting to Rs 480 crore from it.
All four companies have now proposed to repay 100 per cent of the principal outstanding along with 10 per cent interest to LIC Housing Finance Limited. These are the same companies whose borrowings were backed by Subhash Chandra in his capacity as a personal guarantor, sources said.
Subhash Chandra has earlier said that he did not personally borrow money from the lenders involved in the NCLT proceedings and was only a personal guarantor for loans taken by borrowing entities associated with the broader Essel Group.
He rejected reports suggesting that he received a 99.97 per cent haircut on debt worth around Rs 22,000 crore through insolvency proceedings before the National Company Law Tribunal (NCLT). He argued that this figure should not be treated as his personal outstanding debt.
In a statement, he said the Rs 22,006 crore figure being reported represents total claims filed in the proceedings and does not reflect the current status of the matter.
According to Subhash Chandra, the total claims filed in the case amounted to Rs 22,006 crore, of which Rs 21,696 crore were admitted by the resolution professional. However, he said lenders who objected to the repayment plan had claims totalling only Rs 3,992 crore. Of this, claims worth Rs 620 crore have already been settled, leaving Rs 3,372 crore.
Source: IANS
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