HDFC Bank Weighs Appeal Over Essel Founder's ₹6.25 Cr Payment

The Cliff News | 28 August 2026

HDFC Bank, India's largest private sector lender, is contemplating legal action, specifically an appeal to the National Company Law Appellate Tribunal (NCLAT). The bank is challenging a resolution plan approved by the National Company Law Tribunal (NCLT) that mandates Essel group founder Subhash Chandra to pay a mere ₹6.25 crore. This settlement comes against admitted claims totalling a substantial ₹22,000.57 crore.

The lender had actively opposed this resolution plan, voting against it. However, the proposal was ultimately approved by a majority of the creditors. HDFC Bank, which holds a relatively small portion of the total claims—just 3.2 per cent—according to its statement, is now exploring its options for a higher tribunal. The loan in question was originally inherited by HDFC Bank from HDFC Ltd following their merger in 2023.

Disputed Claim Amounts

Subhash Chandra has, however, disputed the magnitude of the claims being pursued in the insolvency proceedings. He contends that the relevant claims amount to approximately ₹3,992 crore, a figure significantly lower than the over ₹22,000 crore stated by the creditors. Chandra maintains that he did not personally borrow funds from any of the involved lenders. His current insolvency proceedings stem solely from his position as a personal guarantor for loans secured by companies affiliated with the Essel group.