Reliance Group rejects Subhash Chandra’s allegations against its media entities as ‘baseless’

NEW DELHI: The Mukesh Ambani-led Reliance Group on Friday rejected allegations made by Essel Group chairman Subhash Chandra against its media entities, describing the remarks as “baseless”.

In a statement, a Reliance Group spokesperson said the conglomerate was “dismayed” by Chandra’s comments and strongly denied the allegations and insinuations against its media businesses.

“We strongly deny the allegations and insinuations against the media entities that are a part of the Reliance Group,” the spokesperson said.

Reliance Group, which owns several media assets, said its media brands had never been used to target individuals and would not be used for such purposes in the future.

“Our media brands have never been used to attack anyone, nor will they ever be,” the spokesperson said.

The group also said it continued to hold Chandra “in high regard as a businessman and entrepreneur” and wished him well.

The statement comes amid proceedings relating to Chandra’s personal insolvency and a recent order by a third member of a National Company Law Tribunal (NCLT) bench.

On Tuesday, NCLT Member (Judicial) Nilesh Sharma, acting as the third member, approved a resolution plan under which Chandra would pay Rs 6.5 crore to settle admitted claims from creditors.

The matter reached the third member after two NCLT members delivered a split verdict. The President of the tribunal subsequently appointed Sharma to resolve the difference of opinion.

Sharma rejected objections raised by dissenting creditors led by LIC Housing Finance, which had argued that the proposed payout was “unviable and unlawful”.

The creditors had contended that against admitted claims of around Rs 22,006.57 crore, the resolution plan proposed payment of only Rs 6.25 crore to creditors, along with Rs 25 lakh towards insolvency process costs.

Chandra, in a statement issued on Thursday, disputed the figure and said the total claim against him in the personal insolvency proceedings was only Rs 3,992 crore. He stressed that he had acted as a personal guarantor and was not the borrower.

Responding to the creditors’ claim of around Rs 22,000 crore, Chandra said he “has not borrowed any money from any lender”.

“Total claim against Subhash Chandra as a personal guarantor, in the personal insolvency proceedings, is only Rs 3,992 crore by the objectors of the plan and not Rs 22,000 crore,” he said.

He said a claim of Rs 620 crore had already been settled, while the borrowing entities had offered to pay a further Rs 1,063 crore.

Chandra also said the companies for which he had provided personal guarantees had repaid Rs 43,000 crore so far and had assured creditors that they would settle any remaining amount.

The insolvency matter will now return to the original division bench for a formal order in accordance with the majority opinion, as required under Section 419(5) of the Companies Act, 2013.