The National Company Law Tribunal (NCLT) approved a debt resolution plan on August 27, 2026, allowing Subhash Chandra to settle liabilities of Rs 22,006 crore for just Rs 6.5 crore.
The ruling has sparked significant controversy, with opposition leaders questioning the insolvency framework's integrity and the massive haircut taken by creditors in the resolution process.
Vijay Mallya and other industry observers have publicly criticized the decision, citing it as a potential precedent that undermines the recovery of public funds in corporate insolvency cases.