Subhash Chandra disputes loan haircut claim as personal guarantee

Earlier this year, a claim that a 99.97 percent haircut had been granted on loans linked to Dr. Subhash Chandra sparked controversy. Chandra objected, asserting that he never borrowed money personally and that his role was limited to acting as a personal guarantor for companies within the Ace Group.

He clarified that the ₹ 22,006 crore figure cited in the proceedings reflects the total claims filed, not a personal debt owed by him. Of that amount, ₹ 21,696 crore had been approved, while dissenting lenders raised objections amounting to about ₹ 3,992 crore.

Out of the disputed claims, ₹ 620 crore had already been settled, leaving approximately ₹ 3,372 crore pending. Chandra noted that the borrowing companies had offered to pay roughly ₹ 1,113 crore to the dissenting lenders, and negotiations remain ongoing.

The guarantor’s stance underscores the distinction between corporate borrowing and personal liability, a nuance that courts will need to examine closely as the case proceeds.