Essel Group Chairman Dr Subhash Chandra issued a statement on the National Company Law Tribunal (NCLT) proceedings, directly addressing Reliance Industries Chairman Mukesh Ambani and his media network, Network18, over reports concerning the group and claims linked to personal guarantees.
Rejecting media reports citing a Rs 22,000-crore debt figure, Dr Chandra said that he had personally reached out to the Reliance Industries Chairman for what he described as inaccurate reporting about the NCLT proceedings by Network 18. The Essel Group founder said he had already liquidated his personal and group assets to meet liabilities and therefore has “nothing left to lose”, contrasting his position with that of large corporate groups that have significant business interests and reputations at stake.
He urged the Ambani-led media network to stop what he termed “wrong propaganda” and “witch hunting” in connection with the proceedings involving his personal guarantees. In a video message aired on Zee News, Dr Chandra said he was presenting his side of the matter to the public after what he described as a false narrative was built around the NCLT proceedings and the widely reported Rs 22,000-crore figure.
His latest statement comes against the backdrop of what he termed sensationalised coverage by rival publications and speculation on social media, which he said has repeatedly distorted the legal nature of the proceedings, despite the Essel Group’s sustained efforts to repay its debt through the sale of key assets, including Zee Entertainment Enterprises Ltd (ZEEL), as well as personal and family assets.
Dr Chandra clarified that the proceedings concern personal guarantees provided for borrowings by various Essel Group entities and should not be interpreted as proceedings related to his personal borrowings. His comments came after his office issued a written statement on the issue, highlighting the distinction between the total claims involved in the personal-guarantee proceedings and the specific claims raised by lenders opposing the proposed repayment plan.
The Essel Group Chairman reiterated that when the group encountered financial stress in January 2019, its liabilities stood at approximately Rs 45,000 crore. Of this amount, around Rs 43,000 crore has since been repaid, he said. Dr Chandra added that the group and his family had taken exceptional measures to honour repayment commitments, including selling personal and family assets.
Dr Chandra said he chose to address the public directly despite being aware that his comments might elicit varied reactions.
“Some people will say that I should not have done this. Some may perhaps appreciate it, some may criticise it too… Perhaps, for the first time, I am going to speak against a very large corporate person and house in this country,” Dr Chandra said.
Dr Chandra said he attempted to contact Ambani after becoming aware of reports and claims circulating in connection with the NCLT matter. According to him, a mutual acquaintance had initially approached an editor linked to the media network referred to in his statement, expressing concerns about the coverage. Dr Chandra alleged that the editor indicated the reports were being published on instructions “from above” that were “bound to be followed”.
He said he later tried to reach Ambani directly. Dr Chandra stated that he called Mukesh Ambani after learning about the matter but was unsure whether the call had reached him. He added that Ambani’s calls had also generally come through in the past, but he had not received any response so far.
“I wrote a letter to him this morning. It may have reached him… Perhaps it may not have… If it has not, it will reach him. But I felt that I should place my matter before you and before the court of the public. Thereafter, whatever happens, will happen,” he added.
Dr Chandra said the way the personal-insolvency proceedings had been reported did not adequately distinguish between personal guarantees provided by him and the actual borrowings undertaken by Essel Group entities.
In a statement issued by his office on August 27, it was clarified that the aggregate claims in the personal-guarantee proceedings amounted to approximately Rs 22,006 crore, while lenders opposing the proposed repayment plan accounted for claims worth Rs 3,992 crore. Dr Chandra has stressed that the Rs 22,000-crore figure should not be interpreted as the amount personally borrowed by him.
‘Please stop the wrong propaganda against me and my group’
Dr Chandra said he believed the reporting and public discourse had unfairly singled him out and targeted the Essel Group, despite what he described as the substantial repayments made by the group following its financial difficulties in 2019. He said the group’s approach to repaying its liabilities was guided by the values and principles instilled in him by his elders.
“Rs 45,000 crore was the debt on us, on our family and on our group. What our elders taught us is that any money owed to any person or institution must be paid back,” Dr Chandra said.
“We have repaid Rs 43,000 crore out of Rs 45,000 crore by selling all our assets, as I said in the press statement yesterday and this morning as well,” he reiterated.
Dr Chandra said only two accounts remained and asserted that the institutions involved held sufficient assets and would not suffer any loss. “The banks and institutions involved have sufficient assets with them. They will not suffer any loss,” he said.
The Essel Chairman said he was proud of having remained in the country and faced the consequences arising from the group’s financial difficulties instead of leaving or avoiding them. “I am a proud corporate citizen of this country who has not run away despite problems, despite financial stress,” Dr Chandra said.
“There is no other parallel of this size which has paid each one of you. Bankers, if you are also listening,” he added.
Dr Chandra then directly appealed to Mukesh Ambani to intervene and put an end to what he described as a campaign against him and the Essel Group.
“But Mukesh ‘ji’, please stop the wrong propaganda against me personally and my Group. Zee is a Group company. I do not own anything in that. In fact, I do not own anything now after implementing this NCLT order,” Dr Chandra said.
Dr Chandra said Zee Entertainment Enterprises Ltd (‘Z’) continues to be a group company, while emphasising that the ongoing NCLT proceedings should not be interpreted as a reflection of the company’s operations or its overall value proposition. He urged the media organisations referred to in his statement to ensure that their coverage remains factual, fair and balanced.
“Please stop it and report anything which is right in your media. Do not do the witch hunting,” he said.
No government intervention or special favour sought
Dr Chandra sought to dispel speculation that the group’s debt-repayment efforts and the ongoing NCLT proceedings were linked to any government support.
He said that although Zee News had backed Narendra Modi in 2013-14 by, in his words, reflecting the voice of the public, he had never approached the government for any intervention during the Essel Group’s financial difficulties.
“Yes, I supported him. But that was the voice of the public, which Zee News carried and highlighted,” Dr Chandra said. “During all my troubles, I never asked anything from him or from that government. Had I asked, perhaps they could have helped. But I never asked,” he added.
Dr Chandra said he understood that the Bharatiya Janata Party (BJP)-led government does not call banks to instruct them to extend loans to specific borrowers or waive their outstanding dues. “That is why I never asked them for anything,” he said.
The Essel Group Chairman stressed that the group’s debt repayments were achieved through its own efforts and the sale of assets, and were not the result of any special government assistance or preferential treatment.
Wishes Mukesh Ambani and family success
Despite voicing strong concerns over what he described as a campaign against him, Dr Chandra concluded his remarks on a conciliatory note. He spoke highly of Mukesh Ambani’s father, Dhirubhai Ambani, recalling his respect for him and saying that he had learned a great deal from him as a businessman.
“Dhirubhai Ambani was a very sensible person and a very good businessman. I learned a great deal from him,” Dr Chandra said.
Dr Chandra said he had nothing left to lose after the repayment process, but would continue to defend himself and the Essel Group if the alleged misinformation campaign persisted. “You are troubling a person like Dr Chandra, who has nothing left now? . I have nothing left to lose,” he said. “(On the other hand,) you have a lot to lose. I request you once again with folded hands. Please stop your people from doing all this,” added Dr Chandra.
He said he would stand up for himself if necessary, while extending his best wishes to Mukesh Ambani and his family. “I pray that God keeps you happy, keeps your family happy, and that you move further ahead. May you become number one in the world financially. That would make me happy as an Indian. But please stop doing all this in India,” he added.
