CBI Files FIR Against Subhash Chandra in Alleged Rs 1,322-Crore LIC HFC Fraud

The Central Bureau of Investigation has filed an fir against Subhash Chandra, the Chairman of Essel Group, over an alleged loan fraud of Rs 1,322-crore involving LIC Housing Finance. The FIR alleges that loans were obtained on the basis of inflated net-worth certificates, before the accounts turned into non-performing assets.

The complaint comes three days after Chandra opposed the constitution of a five-member bench of the National Company Law Tribunal to hear his personal insolvency case.

The allegations centre on two loans, Rs 500 crore and Rs 480 crore, both backed by Chandra’s personal guarantees. The Rs 500-crore facility extended to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower. The 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-borrowers.

LIC Housing Finance alleged that the Rs 500-crore loan was sanctioned on the basis of a certificate putting Chandra’s net worth at Rs 59,113 crore as of March 2017. Meanwhile, for the second loan, 
another certificate put his net worth at Rs 40,562 crore. However, at the time of insolvency proceedings in 2024, Chandra pegged his net worth at Rs 31.79 crore. But LIC Housing Finance alleged that the net worth mentioned earlier was inflated.

According to the FIR, during subsequent proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL.

NCLT judicial member Nilesh Sharma last week approved the repayment plan proposed by Chandra under Section 114 of the IBC and rejected the dissenting lenders' objections.
It was backed by creditors holding 80.8% of the voting share, while LICHFL, HDFC Bank, Axis Bank, Canara Bank, RBL Bank and Union Bank voted against it.