New Delhi, Aug. 30 -- Dissenting lenders have alleged that five entities linked to media baron Subhash Chandra's family together controlled 61.78 per cent of the voting share and were instrumental in pushing through his personal insolvency resolution plan, which proposes to pay just Rs 6.5 crore against admitted creditor claims of about Rs 22,006.57 crore.

The lenders contended that five entities linked to Chandra should have been barred from voting on his repayment plan. Their votes helped the plan secure 80.814 per cent approval in the committee of creditors (CoC), according to a 144-page oreder of National Company Law Tribunal (NCLT) . The five entities are Veena Investments Pvt Ltd, Direct Media Distribution Ventures Pvt Ltd, World Crest Advisors LLP, Lemonade Capital Advisors LLP and Corpcall Capital Advisors LLP.

The objections were rejected by Nilesh Sharma, the third member of the NCLT bench, who ruled in favour of the repayment plan after a split verdict between Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri.

Dissenting lenders led by HDFC Bank and IDBI Trusteeship Services, representing Edelweiss and Franklin Templeton funds, argued that the five entities fell within the definition of "associates" under the Insolvency and Bankruptcy Code (IBC) and their votes should not have been counted.

HDFC Bank, with 3.2 per cent of the total claim amount, has already said it is mulling an appeal against the NCLT's order.

Other dissenting lender Canara Bank too stated that it is filing an appeal in NCLAT against the NCLT order. Canara Bank (1.60 per cent voting share) along with other public sector entities Union Bank of India (0.76 per cent voting share) and LIC Housing Finance Ltd (6.09 per cent voting share), opposed and voted against the repayment plan submitted by Subhash Chandra for Rs 6.25 crore, Canara Bank said in a statement.

However, the repayment plan was approved by other private creditors with a majority vote of 80.81 per cent voting shares.

In fact, Canara Bank demanded a forensic audit, but the same could not be allowed in view of its minority voting share, the statement said.

Published by HT Digital Content Services with permission from Millennium Post.