The Central Bureau of Investigation (CBI) has filed a case against Essel Group chairman Subhash Chandra and several others over alleged irregularities involving loans worth more than ₹1,322 crore obtained from LIC Housing Finance Ltd.
The FIR, registered on August 31, follows a complaint by LIC Housing Finance, which alleged that Chandra, along with borrower companies and their directors, submitted incorrect and inflated net-worth details to secure financial assistance.
The agency has booked those named in the case under charges including criminal conspiracy, cheating and criminal breach of trust.
LIC Housing Finance alleges loan irregularities
According to the complaint, LIC Housing Finance approved a ₹500 crore loan in March 2018 to Vasant Sagar Properties Pvt Ltd and Pan India Infraprojects Pvt Ltd for business expansion. The facility was backed by Chandra’s personal guarantee.
The lender later sanctioned another loan of ₹480 crore in August 2018 under a rental discounting arrangement to Digital Subscriber Management and Consultancy Services Pvt Ltd and Spirit Infrapower and Multiventures Pvt Ltd. This loan was also supported by Chandra’s personal guarantee.
LIC Housing Finance alleged that the first loan approval was partly based on a net-worth certificate submitted by Chandra, which stated his wealth at $6.2 billion, or ₹59,113 crore, as of March 31, 2017. Another certificate used for the second loan showed his net worth at ₹40,562 crore.
Loans later turned into defaults
The complaint stated that both loan facilities subsequently slipped into default. The outstanding dues were estimated at ₹570.50 crore for the Vasant Sagar facility and ₹507.25 crore for the Digital Subscriber Management loan.
LIC Housing Finance alleged that Chandra later disputed the net-worth figures during personal insolvency proceedings. According to the complaint, he declared his net worth at ₹31.79 crore in 2024 and stated that it had not crossed ₹40,000 crore even during 2017-18.
The lender alleged that false documents were created to project an inflated financial position and that the borrower companies and their officials acted together to obtain loans.
The CBI has named Subhash Chandra, the borrower companies, their directors and other unidentified individuals and public servants in the case. The investigation will determine further details regarding the alleged financial transactions and responsibilities of those involved.
