The Enforcement Directorate (ED) has registered a money laundering case against media entrepreneur Subhash Chandra over an alleged loan fraud involving a Rs 1,322 crore loss to LIC Housing Finance Ltd (LICHFL), PTI reported, citing officials.
The agency initiated proceedings under the Prevention of Money Laundering Act (PMLA), taking cognisance of a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).
The allegations concern loans allegedly obtained using inflated net worth certificates. Chandra's response is awaited.
According to LICHFL's complaint, Chandra submitted financial certificates that helped secure two loans totalling Rs980 crore.
One facility of Rs500 crore was sanctioned to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as co-borrower.
The second, a Rs480 crore rental-discounting facility, was extended to Digital Subscriber Management and Consultancy Services Private Limited, alongside co-borrower Spirit Infra Power and Multi Ventures Private Limited.
Both loans were backed by continuing guarantees executed by Chandra.
The lender alleged that a certificate issued by DJM and Co on March 28, 2018, assessed his net worth at approximately Rs59,000 crore.
Another certificate, issued by MPJ and Co on July 6, 2018, valued it at Rs40,562 crore. Both facilities subsequently defaulted, allegedly causing losses of Rs1,322 crore.
The CBI complaint alleges that Chandra disputed the earlier net worth figures during proceedings under the Insolvency and Bankruptcy Code, 2016.
According to the FIR, he declared his 2024 net worth at Rs31.79 crore and stated that his 2017-18 net worth did not exceed Rs40,000 crore.
Investigators allege that inflated financial documents helped obtain loans for the borrowing companies.
Separately, LICHFL approached the National Company Law Appellate Tribunal (NCLAT), opposing a repayment plan approved by the National Company Law Tribunal (NCLT).
The plan reportedly provides creditors approximately Rs6.5 crore against claims totalling around Rs22,006 crore from Chandra's personal estate.
The allegations remain subject to investigation and legal proceedings.
