I have seen and observed social media posts for the past three days on the above issue. Some of the posts also included hashtags like #PaiseVapasKaro. There has been a wrong perception and understanding about the matter. Hence, I am giving a detailed account of the entire matter again:
- Borrowing by me, Dr. Subash Chandra: Rs. 0
- (a) Total Personal Guarantees signed: Rs.22000 Cr.
(b) Out of these 22000 Cr. guarantees signed at the time of
Borrowing of funds by the borrowers (Rest were signed post. Rs.4800 Cr.
Default occurring, though I am not complaining, as I own the signatures.)
- Total claims filed at the beginning of the trial by NCLT on Personal Insolvency Case initiated by India bulls Housing Finance Ltd, of the lenders who have objected the plan submitted by the Resolution Professional (RP) [who has been appointed by Hon’ble National Company Law Tribunal (NCLT) and is considered as a court officer] are as given in the table below. The repayment plan was prepared by the RP considering total assets and funds available with the PG. He investigated how the declared funds/assets of PG in Parliament of India in 2016 of Rs.39.08 Crores were reduced to 31.79 crores (Including a residential house valued at Rs.25 Crores, which was also mortgaged) hence leaving liquid assets worth 6.79 Crores.
The borrowing entities are multiple in numbers, even in the case of many lenders. Which means lenders might have lent money to 2, 3 or 4 entities which were guaranteed repayment by Dr. Subhash Chandra.
Sr. No. | Name of the Lender | Amount Released / Disbursed at Borrowing Time | Amount Paid back by borrowers | Balance Outstanding | Amount claimed from the Personal Guarantor | Amount settled after the personal insolvency proceedings started | Balance outstanding as of today as per claims though the amount not reconciled between lender G borrower | Remarks, if any |
| 1 | India Bulls Housing Finance Ltd. | 726 | 771 | (49) | 429 | Settled / Paid | NIL | Settled post the start of personal insolvency |
| 2. | Axis Bank Group | 388 | 157 | 231 | 620 | Settled / Paid | NIL | Any remaining payment out of settlement is in process |
3. | HDFC Group (4/5 accounts) | 1025 | 1275 | (250) | 775 | 775 | Claims without valid personal guarantee | |
| 4. | Canara Bank | 315 | 202 | 112 | 348 | 348 | Borrowing against assets of borrower in USA | |
| 5 | Edelweiss | 300 | 232 | 68 | 565 | 565 | Clearly more than 500 crore security was available at the time of default. Matter also pending in DRT. | |
| 6. | Franklin Templeton | 425 | 235 | 190 | 729 | 729 | Borrower offered to sell security available during default period. But lender took risk not to sell and expected to gain, but the share value went further down, hence kept as own risk. | |
| 7. | IndusInd Bank | 500 | 493 | 7 | 240 | 240 | They also had adequate security during default period but did not convert to cash. Hence kept security for further gains, at own risk. | |
| 8. | LIC Housing Finance (Multiple Accounts) | 980 | 416 | 564 | 1322 | 1322 | Offered to settle. Part security available. | |
| 9. | RBL Bank | 65 | 10 | 54 | 119 | 119 | They were offered to pay by the borrower as settled with the large lender, but they refused. | |
| 10. | Union Bank | 84 | 12 | 71 | 164 | 164 | Security available | |
| 4808 | 3803 | GG8 | 5311 | 4262 |
Points to be noted:
- As can be seen from the above table as part of the total amount of Rs. 4808 Crores disbursed, the borrowers paid Rs. 3803 Crores, leaving a balance of only Rs. 998 Crores.
- Against a payable amount of Rs. 998 Crores, claims filed were Rs. 5311 Crores. Afterwards reducing the settled/paid claims of Rs. 1049 Crores. Remaining Rs. 4262 Crores. (Amounts differ from the Press Statement given earlier of Rs.3992 Crores and Rs. 4262 Crores because some accounts were not taken as they neither voted for or against).
- Dr. Subhash Chandra has discussed with all borrowers, and they have assured to settle this Rs. 4262 Crores after reconciliation with lenders, settle and pay the balance.
There is substantial borrowing from other sources which are:
- Foreign Funds
- Domestic Funds
- NBFCs and C Corporates.
Most of these were or are being settled by the borrowers. Remaining either have adequate assets or are going to be paid.
With the above details, Dr. Subhash Chandra states that he hopes that the lenders also discuss with the borrowers, reconcile the accounts outstanding and get paid by the borrowers.
He also hopes that people who supported #PaisaWapasKaro and others giving their comments on social media will be satisfied with this.
