New Delhi: A new corporate tussle has come up between Mukesh Ambani, chairman of the Reliance Group and Subhash Chandra, chairman of the Essel Group. Chandra has alleged that media houses associated with the Reliance Group are promulgating a ‘fake narrative’ on the personal insolvency case. But, the allegations, which have been vehemently rebutted by Reliance, are baseless.
This controversy was added at a time when the personal insolvency proceedings of Chandra are already in the spotlight of the National Company Law Tribunal (NCLT). The resolution plan approved by the tribunal calls for Chandra to pay ₹6.5 crore to the admitted creditors for a total of ₹22,006 crore. This significant gap between the two has resulted in a great controversy between lenders and other stakeholders.
Subhash Chandra directly names Mukesh Ambani
In a recent tweet, Chandra took a dig at Mukesh Ambani and accused the media outlets with a “false narrative” on the finicals of the latter, including flagship TV18, CNBC and News18.
Chandra vehemently denied the reports saying it was a falsehood to suggest that he personally owed more than ₹22,000 crore. The real claims against him as a personal guarantor were in the region of ₹3,992 crore, he says. He also alleged that he did not hold the initial loan on the loans linked to the administration proceedings.
Chandra also claimed that she had called Ambani on the issue and that she had also sent him a letter. He alleged that a mutual acquaintance subsequently approached one of the Network18’s editors with complaints and that he was told by the “above” to do so. These are Chandra’s claims and have not been proved to be true.
Reliance strongly rejects the allegations
Reliance has responded to Chandra’s claims by saying they are false. His comments left them “disappointed,” the group said in a response, and harshly rejected any suggestion or criticism about any of its media businesses.
The company also said that its media brands had never been used for the attack of anybody and would not be used for the purpose. Reliance wished Chandra good luck and continued to revere him as a businessman and entrepreneur, it added.
Dispute comes amid NCLT Insolvency Case
The broader issue is related to Chandra’s own personal insolvency case. The NCLT’s verdict came after a split decision – a third member was brought in to resolve the difference. Some creditors against the settlement include LIC Housing Finance that says the offered amount is too little.
Chandra, on the other hand, feels that his group has already paid back most of its loans. He has claimed that this has been returned by the businesses associated with his personal guarantees as of now, approximately ₹43,000 crore.
At this point, the accusations and counter-accusations have further muddied the waters in an already complex bankruptcy case. In a statement last week, Reliance has stood firm and confirmed it has been contesting Chandra’s claims and is pursuing these claims through the legal system.
