The Elusive Wealth Behind Personal Guarantees The recent case of Subhash Chandra's paltry repayment of Rs 6 crore against admitted claims of over Rs 22,000 crore has sparked outrage and raised important questions about the effectiveness of personal guarantee recoveries in India.
This is not an isolated incident – data from the insolvency regulator reveals that nearly 5,200 applications have been filed against personal guarantors since 2019 20, with a meager 64 resulting in approved repayment plans.
Personal guarantees create liability without necessarily preserving the wealth behind them.