CBI Books Essel Group Chairman Subhash Chandra In LICHFL Fraud Case

New Delhi: The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group chairman Subhash Chandra and three others in connection with an alleged Rs 1,322-crore fraud involving LIC Housing Finance Ltd (LICHFL), officials said on Saturday.

According to the FIR, the case relates to two loans totalling Rs 980 crore sanctioned to four borrower entities allegedly on the basis of inflated net worth certificates submitted on behalf of Chandra. The loans subsequently turned into defaults, with the agency alleging that the funds were misappropriated.

The complaint concerns a Rs 500-crore facility sanctioned to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower, and a Rs 480-crore facility extended to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd as co-borrower.

The FIR alleged that the Vasant Sagar facility, sanctioned for takeover, top-up and business expansion, was secured by a continuing guarantee executed by Chandra on March 28, 2018. The Digital facility, sanctioned under a rental securitisation scheme, was similarly backed by his continuing guarantee.

LICHFL told investigators that a net worth certificate issued by DIM & Co on March 28, 2018, placed Chandra’s net worth at around Rs 59,000 crore. Another certificate issued by MPJ & Co on July 6, 2018, valued his net worth at Rs 40,562 crore.

The FIR said Chandra later denied possessing the net worth claimed in the certificates during insolvency proceedings. It noted that he valued his net worth in 2024 at Rs 31.79 crore and said it had been no more than Rs 40,000 crore in 2017-18.

The agency has alleged that Chandra colluded with the four borrower companies and their officers and directors to induce LICHFL to release the funds using false and inflated documents.

There was no immediate reaction from Chandra or the other accused named in the FIR.

The case comes amid an ongoing dispute over Chandra’s personal insolvency proceedings before the National Company Law Tribunal (NCLT). A five-member NCLT bench recently stayed approval of a repayment plan and restrained Chandra from alienating any assets.

The repayment plan involved Rs 6.25 crore from Chandra personally as guarantor, while principal borrowing companies were to pay Rs 1,494 crore separately. LICHFL and several other lenders had opposed the proposal, with LICHFL arguing that its admitted claims of about Rs 22,006 crore were inadequately addressed. (Agencies)