The Central Bureau of Investigation (CBI) has registered a First Information Report (FIR) against Essel Group chairman Subhash Chandra and several associated companies and directors over an alleged loan default fraud causing a loss of over ₹1,322 crore to Life Insurance Corporation Housing Finance Ltd (LICHFL).
Key Details of the Case
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The Allegations: The CBI case stems from a complaint filed by LICHFL alleging that Chandra used severely inflated net worth certificates to secure personal guarantees for two major credit facilities totaling ₹980 crore in 2018.
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The Disputed Loans:
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A ₹500 crore facility extended to Vasant Sagar Properties Pvt. Ltd. (with Pan India Infra Projects Pvt. Ltd. as co-borrower), backed by a net worth certificate issued in March 2018 claiming Chandra’s net worth was roughly ₹59,113 crore.
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A ₹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), backed by a certificate in July 2018 placing his net worth at around ₹40,562 crore.
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Net Worth Discrepancy: LICHFL’s complaint points out that during subsequent proceedings under the Insolvency and Bankruptcy Code (IBC), Chandra disputed these figures, stating that his net worth in 2024 was only ₹31.79 crore and did not exceed ₹40,000 crore back in 2017–18. Both loans eventually lapsed into Non-Performing Assets (NPAs), escalating past ₹1,322 crore with accumulated interest and liabilities.
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Broader Legal Context: The development coincides with intense legal scrutiny surrounding Chandra’s personal insolvency proceedings. A special five-member bench of the National Company Law Tribunal (NCLT) recently put a contentious ₹6.25 crore personal repayment plan on hold and restrained him from alienating or transferring his assets following challenges by dissenting lenders including LICHFL, Canara Bank, and Union Bank of India.
