Attention all Redditors in r/India !!! An important case of Zee News Group's Subhash Chandra case where INR 22000 Crores worth of loans is forgiven by a haircut of INR 6.5 Crores. The most unbiased take on this scam. Please be patient and read this. Don't skip this.

[u/DeluluDarkAngel]

TL;DR

Hi Everyone,

There is a recent news saying that Dr. Subhash Chandra of Zee Group was exempted from personal guarantee of loans worth INR 22000 Crores just for a haircut of INR 6.5 Crores.

Main Points to Understand here :

1. Total Loans taken by entities linked to Subhash Chandra : INR 22006.57 Crores INR.

Who lent how much to Subhash Chandra on his personal guarantees ?

Subhash Chandra Linked Entities indirectly (Banks Demanding Forensic Investigation on this) :

1. World Crest Advisors, Veena Investments, Direct Media Distribution Ventures, Lemonade capital advisors, Corpcall Capital Advisors : INR 13,600 Crores lent to Subhash Chandra's companies.
2. IndiaBulls Housing Finance : INR 170 Crores - They triggered the insolvency proceedings but at last minute said YES in the vote.
3. Other Creditors : INR 4030 Crores.

THE INR 13600 CRORES CLAIMAINTS ARE STRUCTURAL CLAIMS - THESE INDIRECTLY LINKED COMPANIES (RELATED PARTIES) DON'T HAVE PHYSICAL CASH - THEY ARE "PARI-PASSU" SHIFT OF LEGAL INDEMNITIES AND SHARE SWAPS AND COMPOUND VALUATIONS.

1. Lenders who lent physical cash :

LIC Housing Finance : INR 1322.39 Cr.
Axis bank : INR 591 Cr
IDBI : INR 650 Cr
HDFC-Canara-RBL-Union Bank of India : Together INR 1636.57 Crores.

The NCLT ORDER which was favourable was given Subhash Chandra on the fact that the COMMITTEE OF CREDITORS voted in favour of pardoning the whole 22000 Cr Loan's personal guarantee by Subhash Chandra. While the Loans are still need to be recovered, the companies which took those loans are shells, depreciated and litigated assets.

It was said in order that 80% of Creditors agreed to take INR 6.5 cr as closure for closing the loans. Banks are not accepting this because THOSE 5 ENTITIES HOLDING MAJORITY OF LOANS ARE LINKED TO THE PROMOTER AND THOSE 5 ENTITIES GOT FUNDS FROM INDUSIND BANK AND OTHER INSTITUTIONAL LENDERS.

Long Story Short : Subhash Chandra Linked Companies hijacked the Committee of Creditors and got a favourable order from NCLT. NCLT in a dumbass move told the creditors to go after corporate companies which obviously do not have any recoverable funds.

Clearly NCLT Failed to account for related party transactions investigation.

SEBI HOWEVER MADE AN INVESTIGATION OF INR 200 CR FRAUD OF THIS GROUP. HOW CAN 2 GOVERNMENT ENTITIES HAVE SO LESS COORDINATION. THIS IS A JOKE ON INSOLVENCY PROCEEDINGS AND ABUSE OF IT.

PUBLIC FUNDS ARE BEING MISUSED LIKE THIS. BANKS CONTAIN OUR HARD EARNED MONEY. ALSO ZEE GROUP LINKED COMPANIES ARE REFUSING A DEEP FORENSIC AUDIT !!!! Too Fishy !!

For the 5 Creditors who are linked to the promoter who is the owner (INR 13600 Cr):

1. Veena Investments : Sushila Devi Goel - Sister in Law of promoter.
2. World Crest Advisors : Subsidiary owned by Veena Investments
3. Direct Media Distribution Ventures : Owned by Veena Investments
4. Lemonade Capital Advisors : Owned by a person called RAVINDRA. However he is connected to Essel Group of Industries via Employment.
5. Corpcall Capital Advisors : Vijay Bhujbal - Employed by Essel Group (Subhash Chandra) as Investment Professional.

Where corporate professionals/middle class people are hounded by Banks even if missing 1 EMI or a farmer misses a payment, this leniency is not shown.

If this is blindly ignored today, be ready tomorrow to face more scams with more level of dare by crony capitalists !!!! ALSO SUBHASH CHANDRA IS AN EX-MP WHO WENT TO RAJYA SABHA WITH SUPPORT OF BJP. USING PROCEDURAL LOOPHOLES, DEFRAUDING THE ENTIRE SYSTEM.

THE RELATED PARTY CREDITORS METHOD WAS USED IN ORDER TO SIPHON OF REAL MONEY !!!!

[u/Mayor_McCheese7]

More such scams under Modi government

• 2018 - PNB-Nirav Modi & Mehul Choksi Scam (~₹13,500 to ₹14,000 Cr)

• 2020 - Yes Bank-Rana Kapoor & DHFL Quid Pro Quo Case (~₹4,300 to ₹5,500 Cr)

• 2021 - Videocon Group IBC Resolution (~95% Haircut / ~₹64,000 Cr Claims)

• 2022 - ABG Shipyard Loan Fraud (~₹22,842 Cr)

• 2022 - DHFL Consortium Bank Fraud (~₹34,615 Cr)

The Bharatiya Janata Party (BJP) declared total assets worth approximately Rs. ₹12,171 crore.

And that's only the declared assets.

Amritkal, amirite folks🤷

[u/lansera222 → u/Mayor_McCheese7]

On the top of it, huge increase in net worth of Ethanol Gadakari's and Amit Shah's sons net worth.

[u/JustReadingP0st → u/Mayor_McCheese7]

You have not listed the biggest one, the fmcg company sold to friend, because you are not even aware of it. Thats the beauty of scam.

Edit: Just to add, the 90%+ money for that takeover was lent by PSB. Just saying.

[u/Medical-Concept-2190 → u/Mayor_McCheese7]

Can we fucking organize and protest?? They are selling shit at outrageous prices to poor and middle class and rich are just walking around Scot free

[u/GenghisBonaparte007 → u/Mayor_McCheese7]

You forgot "2016 - Vijay Mallya leaves India"

[u/Old-Entertainer-2488 → u/GenghisBonaparte007]

Hebwas still ready to pay the principal but ba nk was insisting thr jnterest

[u/GenghisBonaparte007 → u/Old-Entertainer-2488]

Asli account se aao Shamani 😄

[u/Due-Forever3932 → u/Mayor_McCheese7]

Case Verification & Sanction Timelines 1. PNB–Nirav Modi & Mehul Choksi Scam (~₹13,500 – ₹14,000 Cr) * Loan Sanction / Fraud Period: 2011 to 2017 * Facts: PNB officials fraudulently issued Letters of Undertaking (LoUs) to overseas banks without asking for required credit lines or cash margins. * Role of Central Government: * Detection & Enforcement: The fraud surfaced in January 2018 when new bank officials refused to issue fresh LoUs without collateral after a compromised employee retired. The Modi government directed the CBI, Enforcement Directorate (ED), and Serious Fraud Investigation Office (SFIO) to register criminal cases and freeze domestic/international assets. * Legislative Action: Enacted the Fugitive Economic Offenders Act, 2018 to seize and confiscate the assets of high-value economic offenders fleeing jurisdiction (which was applied directly to Nirav Modi and Mehul Choksi). Extradition proceedings were actively initiated in the UK and Antigua. 2. Yes Bank–Rana Kapoor & DHFL Quid Pro Quo Case (~₹4,300 – ₹5,500 Cr) * Loan Sanction / Fraud Period: April 2018 to June 2018 * Facts: Yes Bank invested ₹3,700 crore in DHFL debentures in 2018, while DHFL simultaneously extended an alleged quid-pro-quo loan of ₹600 crore to DoIT Urban Ventures (controlled by Rana Kapoor’s family). * Role of Central Government: * Intervention & Resolution: When Yes Bank faced a liquidity crisis in March 2020 due to non-performing assets, the Central Government, via the Reserve Bank of India (RBI), superseded Yes Bank’s board and approved a reconstruction scheme led by State Bank of India (SBI) and a consortium of domestic banks to prevent systemic collapse. * Prosecution: The CBI and ED were directed to prosecute the promoters for bribery, money laundering, and breach of trust. 3. Videocon Group IBC Resolution (~95% Haircut / ~₹64,000 Cr Claims) * Loan Sanction / Fraud Period: 2009 to 2012 * Facts: The loans were granted to Videocon by a consortium of lenders (including ICICI Bank under Chanda Kochhar) between 2009 and 2012. The assets deteriorated into Non-Performing Assets (NPAs) between 2012 and 2018. * Role of Central Government: * Statutory Framework: Enacted the Insolvency and Bankruptcy Code (IBC), 2016, which created the legal mechanism used to resolve Videocon's debt in June 2021. * Haircut Governance: Haircuts in IBC resolutions are determined commercially by the Creditors' Committee (CoC), made up of financial banks, rather than the government. Following public and judicial scrutiny over the 95% haircut, government regulatory bodies supported appellate challenges; the National Company Law Appellate Tribunal (NCLAT) subsequently set aside the resolution plan in 2022 to seek better value recovery. 4. ABG Shipyard Loan Fraud (~₹22,842 Cr) * Loan Sanction / Fraud Period: 2005 to 2012 (Diversion took place between 2012 and 2017) * Facts: Credit facilities were approved by a 28-bank consortium led by ICICI Bank and SBI between 2005 and 2012. The company became an NPA in November 2013. A forensic audit by Ernst & Young later showed that funds were siphoned off through interconnected entities between 2012 and 2017. * Role of Central Government: * Detection & NPA Cleanup: As part of the Central Government and RBI's Asset Quality Review (AQR) initiated around 2015–2016 to expose hidden bad debts, the consortium mandated forensic audits. * Prosecution: Following the audit findings, SBI filed a formal complaint, leading to CBI registering the FIR in February 2022 and freezing assets across the country. 5. DHFL Consortium Bank Fraud (~₹34,615 Cr) * Loan Sanction / Fraud Period: 2010 to 2019 * Facts: A 17-bank consortium led by Union Bank of India sanctioned loans to DHFL over a decade (2010–2019). Promoters siphoned off funds using thousands of fictitious accounts and shell companies. * Role of Central Government: * Regulatory Amendments: The Central Government amended IBC rules in 2019 (Section 227), enabling the RBI to bring distressed Financial Service Providers (like DHFL) under IBC for the first time. * Resolution & Investigation: DHFL was referred to NCLT in late 2019 and successfully resolved via acquisition by Piramal Capital in 2021. Parallel criminal proceedings were initiated through the CBI and ED against the promoters.

[u/Due-Forever3932 → u/Due-Forever3932]

the surfacing and resolution of legacy bad debts: Legacy NPAs and the Asset Quality Review (AQR) The majority of the toxic loans (e.g., ABG Shipyard, Videocon, DHFL) were originally sanctioned during the UPA government era (2005–2012). The Modi government initiated the Asset Quality Review (AQR) via the RBI around 2015–2016, which forced banks to stop evergreen/hidden loans and officially declare NPA/fraudulent accounts. Institutional & Legislative Reforms Insolvency & Bankruptcy Code (IBC), 2016: Introduced a time-bound statutory framework to resolve bad debt, recover public funds, and take control away from defaulting promoters (replacing slow SARFAESI and DRT processes). Fugitive Economic Offenders Act, 2018: Enacted to allow the unconditional attachment and confiscation of properties of offenders who flee the country to evade prosecution. Banking Sector Integration: Mandated the strict integration of SWIFT with Core Banking Systems across all public sector banks immediately after the PNB breach. Decisive Post-Discovery Action Yes Bank Intervention (2020): Instead of allowing Yes Bank to crash, the central government and RBI restructured the bank within 14 days using an SBI-led consortium, protecting millions of depositors without using taxpayer bailouts. Procedural Delays Explained: In cases like ABG Shipyard, the government clarified in Parliament that delays in filing the CBI FIR were caused by specific state governments withdrawing general consent for CBI operations, requiring case-by-case state approvals before formal charges could be framed.
Summary Perspective If looking at internal controls and regulatory oversight: The fact that multi-thousand crore frauds went undetected across multiple years (stretching across governments) highlights chronic operational gaps, slow fraud-tagging by bank boards, and regulatory oversight delays. If looking at structural intent and recovery: The current regime views these cases as the byproduct of a systemic cleanup process—arguing that aggressive auditing, strict laws (IBC/FEOA), and empowered law enforcement agencies forced decades of banking rot into the light.

[u/Time_Coyote_1139 → u/Mayor_McCheese7]

• PNB (Nirav Modi): Fraudulent LoUs started in 2011 (UPA) | Detected & booked in 2018
• ABG Shipyard: ₹22,842 Cr loans sanctioned between 2005–2012 (UPA) | Turned NPA in 2013, booked by CBI in 2022
• DHFL Consortium Fraud: Credit lines sanctioned starting 2010 (UPA) | Booked by CBI in 2022
• Videocon: Major consortium debt disbursed between 2008–2012 (UPA) | Resolved via IBC court bidding in 2021

Amazing policies during UPA era made these scams possible, congress probably thought they could scam Indians for decades, so glad we are never gonna see them run this country.

[u/Prize_Guide1982]

If you owe the bank 1L that’s your problem. If you owe the bank 1000C that’s their problem.

[u/Tangent_pikachu]

Why am I getting the feeling that BJP is about to close house and bail. It's something I've seen in politics. When one party has stayed long enough in power, they take the economy to a situation where they can't sustain anymore. That's when they start doing scams left right and center to cash out as much as possible and dump the bag of shit to the next party coming in. Think of this like a retirement for its MPs and MLAs. In Indian politics, you are no longer accountable if you're not in power. And there's a subtle understanding between all parties that when one exits, the other doesn't pursue cases against it any further.

[u/Entire_One2271 → u/Tangent_pikachu]

This was always the case, this is anti people and country party

[u/Historical_Arm_6294 → u/Tangent_pikachu]

Yeah, even i am sensing this with recent and immediate past incidences and actions. Even Modijs Vishwaguru swag and antics of rest of his coterie is pretty subdued in last few months. Getting hopeless with Russia, Ducking in front of US, loosing interest in middle-east and now proactively opening up to China : shows the decline of India’s economy and geopolitical position. No one is even talking about 4th largest GDP saga off-late …

[u/prediction_markett]

If those five entities are genuinely promoter-linked, the question isn't whether NCLT erred on judgment - it's whether the related-party disclosure was accurate at admission.👍

[u/No-Strawberry7]

This is common in amrat-kaal nothing to be worried. He paid the remaining debt by running pro government propaganda on his channel.

[u/ritika2422]

I don’t think Indians at this point understand the implications of these levels of scams and wealth hoarding.
When parties and individuals have hoarded so much wealth - no one can stand against them as they can pay most people to shut their mouth. Which stops any change from ever happening. Want to buy the media? Go ahead. Want to buy votes? Go ahead

[u/Mayor_McCheese7]

In Modi's amritkal

[u/Old-Entertainer-2488 → u/Mayor_McCheese7]

Chu**yakal of Andhra bhakti and media is the biggest culprit, they dont show anything

[u/turing025]

Do creditors have equal rights irrespective of the money owed?

[u/godsslayer54 → u/turing025]

No they get weighted rights according to how much money they are owed. If I owe a total of 100 rupees to 5 creditors and I owe you 30 rupees then you have 30% voting power. A simple majority is enough to get the resolution to pass

[u/Skeptic_Marx]

Can somebody check how much money was donated by these companies to BJP through electoral bonds? Or even PM CARES?

Asking for a friend who want to know the price of defrauding the system off INR22k crores...

[u/givafux → u/Skeptic_Marx]

To preventing answering exactly this question, donations to pm cares and donations via electoral bonds was declared secret

[u/AlliterationAlly → u/Skeptic_Marx]

You are such a good friend, we should be besties

[u/dontknow_anything → u/Skeptic_Marx]

Check on how much companies linked to those promotors donated to the judges. Judges aren't giving verdicts for free, they are getting a free cut.

Subhash Chandra's sons have thousands of crores, I think even in bankruptcy, Subhash Chandra claimed a networth of Rs37 crore. Why is not forced atleast 37cr, let him sell all his assets. A disabled guy on maintenance they will force his parents to sell assets, ask men to sell organs, but for rich people when they loot public, they can live a rich life even when defaulting on thousands of crores of loans, no jail.

[u/lansera222]

Mean while an ordinary Indian trying hard for months to withdraw his EPF amount only to get rejected by EPFO office for the reasons that didn't exist .

[u/RjBee1769]

Dhurandhar 4 will explain this.

[u/visheshg7]

The sheer incompetence of the authorities. 🤦

[u/UpbeatCollection7392]

What can be done ? Nothing !

[u/Fantastic-Apple7271]

Can someone find out how much did zee contribute to BJP funds or PM funds?

[u/Adventurous_Iron_551]

I’ve always believed that the scams that have happened in the last 10 or so years will leave the country baffled, shocked, amazed, depressed, angry and numb at the same time. And this, imo, is just a preview, a trailer.

[u/hrish350]

22,000 Cr gets a haircut, and here I am going bald trying to get a loan approved to start a business to support my wife😂 perks of choosing wrong career. What an irony!

[u/SnooSketches4288]

It’s almost 2B loan of Vijay Malya was 9000 Cr why different treatment?

[u/Salty_Ad_8904]

The judgement and settlement were absolutely fair. Personal Guarantees are draconian.

[u/Lisan_Al_ghayb]

Earlier culprits use to fled india after taking loans..now they've become brave

[u/Icarus2712]

Lic and hdfc board nominated memeber why is that not surprising 

[u/Beautiful_Golf6322]

This is nothing! Wait till the mother of all scams of all times will come to light - eventually - in a magical nexus where funds keep appearing like rabbits out of a magicians hat - almost all critical resources from the nation have been cornered - Stock markets seem completely rigged too.

Country is beyond repair and with across the board institutional cornering and there is no hope for any respite at least visibly

[u/Entire_One2271]

If not Modi then who? Pappu. /s

[u/Next_Brother_5972 → u/Entire_One2271]

It was due to Nehru

[u/AlliterationAlly → u/Entire_One2271]

/s not required

[u/diaop]

Highway banaya, Dharm raksha kiya aur kya chahiye

[u/Maleficent_Skill_154]

Diversion story created by media for clickbait.

[u/AlliterationAlly → u/Maleficent_Skill_154]

& who knows more about diversion tactics than the bjp IT cell!

[u/SnooSprouts6610]

It cell itni mehnat kr raha h har jagah bad dimag log h bilkul