05 September,2026 06:18 PM IST | New Delhi | mid-day online correspondent
Subhash Chandra. File picture.
The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group Chairman Subhash Chandra for allegedly projecting a higher net worth to defraud Life Insurance Corporation Housing Finance Ltd (LICHFL) into sanctioning loans to several entities, according to news agency PTI.
This caused the public sector lender a loss of over Rs 1,322 crore, the FIR alleged.
The lender in its complaint, which is part of the FIR, has alleged that the Zee TV founder submitted net worth certificates as a guarantor that were used to secure approval and disbursal of two loans amounting to Rs 980 crore, which were eventually defaulted on.
LICHFL alleged that it extended loan facilities to different companies for business expansion and rental securitisation, with Chandra acting as the guarantor for the borrowings.
According to the FIR, Rs 500 crore facility was extended to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower, and a Rs 480 crore facility was extended to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd as co-borrowers.
In both these cases, Chandra acted as the guarantor and had submitted his net worth certificates.
The FIR further stated that the Rs 500-crore Vasant Sagar facility was sanctioned as a home entity loan for takeover, top-up and business expansion, and was secured by a continuing guarantee dated March 28, 2018, executed by Chandra.
Furthermore, the Rs 480-crore digital facility was sanctioned as a rental discounting facility under a rental securitisation scheme under a different loan account, and was secured by a continuing guarantee, also executed by Chandra, it alleged.
LICHFL claims that Chandra submitted his net worth certificate to be around Rs 59,000 crore, which was issued by DIM & Co on March 28, 2018.
The lender states that the digital facility was sanctioned partly on the basis of a net worth certificate submitted by Chandra, issued by chartered accountants MPJ & Co on July 6, 2018, which put his net worth at Rs 40,562 crore.
According to the FIR, under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL.
Chandra, who is currently going through an insolvency process, has claimed his net worth in 2024 to be at Rs 31.79 crore, and in 2017-18 at no more than Rs 40,000 crore.
"Chandra had been acting in collusion with the borrowers Vasant Sagar Properties Pvt Ltd, Pan India Infraprojects Pvt Ltd, Digital Subscriber Management and ConsultancY Services Pvt Ltd, and Spirit Infrapower and Multiventures Pvt Ltd and their officers and directors defrauded and cheated LICHFL into advancing the loans to the borrower entities, which have since misappropriated the same," the FIR alleged.
"The accused persons breached the trust reposed by LICHFL in misappropriating the funds," it added.
On August 25, the National Company Law Tribunal (NCLT) in Chandra's insolvency case had proposed a repayment plan that would allow creditors to recover just about Rs 6.5 crore from his personal estate against claims of roughly Rs 22,006 crore.
This was opposed by LICHFL and other creditors, and the appeal is pending before the National Company Law Appellate Tribunal (NCLAT). Besides, a five-member bench had stayed the repayment proposal order, which Chandra opposed.
(With inputs from PTI)
