The Congress on Thursday (August 27, 2026) took a swipe at the insolvency tribunal NCLT clearing businessman Subhash Chandra’s ₹6.5 crore payout to settle ₹22,006 crore dues, saying this is not just a haircut but a “mundan” that makes a “complete mockery” of the Insolvency and Bankruptcy Code, 2016.
“This is not just a haircut. Sharma as the third member amid the difference of opinion. It is actually a mundan and makes a completely mockery of the Insolvency and Bankruptcy Code, 2016,” Mr. “In the case of LICHFL, whose admitted claim stood at ₹1,322.39 crore, the proposed repayment was merely ₹38,09,294, amounting to approximately 0.028% of its admitted dues. Sharma, in its 144-page-long order, said the resolution professional’s valuation showed Chandra’s personal estate was worth significantly less than the amount offered under the plan, and that dissenting creditors were unlikely to recover more by rejecting it, since he would then face bankruptcy rather than being able to pay from a position of financial recovery.
Reacting to the development, Congress MP Jairam Ramesh said, “In finance terminology, when creditors are owed money and the debtor repays only part of it, the difference expressed as a percentage is called a haircut. Ramesh said on X. It was contended that such a negligible repayment could not receive the approval of this tribunal,” said the NCLT order recording its submission.
Earlier, the two members of the National Company Law Tribunal had given a split verdict, after which the president of the forum appointed Mr.
