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The NCLT has approved a repayment plan for Zee Group founder Subhash Chandra, settling ₹22,006 crore in claims for just ₹6.25 crore. This has become a hot topic across India. Let's break down the story.

The NCLT approved a repayment plan for Zee founder Subhash Chandra, allowing him to settle claims of ₹22,006 crore for just ₹6.25 crore. This decision has sparked a huge debate. Banks are unhappy, but government sources say the 99.97% loan waiver story is misleading. Let's find out what really happened.Government sources clarified that the NCLT's approval doesn't mean banks are forgiving a ₹22,000 crore loan. The ₹22,006 crore figure is not Subhash Chandra's personal loan. It is the value of claims for which he acted as a 'personal guarantor' for various Essel/Zee companies. The main borrowing companies are still responsible for their debts. The haircut only applies to the amount that can be recovered from Chandra personally.LIC Housing Finance (LICHFL) and HDFC Bank are strongly opposing the NCLT's decision. They argue that settling a ₹22,006 crore claim for just ₹6.25 crore is illegal and unacceptable. Banks also question how Chandra's net worth dropped from over ₹40,000 crore in 2018 to just ₹31.79 crore now. They are preparing to challenge the order in the National Company Law Appellate Tribunal (NCLAT).Sources say Chandra's case is a unique personal guarantor resolution and doesn't reflect the overall success of the Insolvency and Bankruptcy Code (IBC). Under the IBC, banks have recovered ₹4.32 lakh crore through resolution plans by March 2026. This shows the law is effective in handling corporate insolvencies. The next step is for the NCLT bench to issue a formal order, after which banks are expected to appeal.