NCLT five-judge bench seeks CBI response in Subhash Chandra insolvency case

A special five-member bench of the National Company Law Tribunal (NCLT) has sought a response from the Central Bureau of Investigation (CBI) in the personal insolvency proceedings of Essel Group founder Subhash Chandra. The tribunal has directed the investigative agency to submit its reply within four weeks.The move comes after the CBI registered a First Information Report (FIR) against Chandra and others over an alleged Rs 1,322-crore loan fraud involving LIC Housing Finance. The agency’s findings could play an important role in the insolvency proceedings, particularly in matters related to asset disclosures, movement of funds and the validity of creditor claims before the tribunal.CBI Registers Case Against Subhash Chandra Over Alleged ₹1,322 Crore LIC Housing Finance Loan Fraud Five-member NCLT bench examines repayment planThe special bench, headed by NCLT President Justice (Retd.) Anupinder Singh Grewal, also includes Judicial Members Bachu Venkat Balaram Das and Mahendra Khandelwal, along with Technical Members Atul Chaturvedi and Ravindra Chaturvedi.The bench was formed earlier this month after earlier proceedings resulted in differing opinions between members, leaving the matter without a clear majority decision. The newly constituted panel will reconsider the case afresh.The dispute centres around a repayment proposal submitted by Chandra under Section 95 of the Insolvency and Bankruptcy Code (IBC). Under the plan, Chandra proposed repayment of around Rs 6.25 crore along with Rs 25 lakh towards insolvency resolution expenses, against creditor claims exceeding Rs 22,006 crore.NCLT, NCLAT Are Government’s ‘Lifeline’, Need Basic Facilities: Supreme Court Creditors challenge repayment proposalFinancial creditors, including LIC Housing Finance, have opposed the repayment plan, alleging undervaluation of assets, procedural issues and participation of related-party entities in the voting process.The five-member bench had earlier stayed implementation of the repayment plan and restricted Chandra from selling, transferring or creating third-party rights over his personal assets.The CBI’s response is now expected to provide additional information for the tribunal’s assessment of the insolvency proceedings and the issues raised by creditors.

The directive comes against the backdrop of the CBI lodging a First Information Report (FIR) against Chandra and others in connection with an alleged ₹1,322-crore loan fraud involving LIC Housing Finance

The probe agency's findings are expected to bear critical relevance to the ongoing insolvency examination, particularly regarding the disclosure of assets, fund flows, and the legitimacy of claims...