The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group chairman Subhash Chandra and three other entities over an alleged Rs 1,322-crore fraud involving LIC Housing Finance (LICHFL).
Core Allegations and Loan Details
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Inflated Net Worth: Chandra allegedly submitted false net worth certificates issued by chartered accountant firms (DIM & Co and MPJ & Co) in 2018, pegging his worth between Rs 40,562 crore and Rs 59,000 crore to secure loans.
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Loan Facilities: The fraud centers on a Rs 500-crore facility granted to Vasant Sagar Properties Pvt Ltd (with Pan India Infra Projects as co-borrower) and a Rs 480-crore facility to Digital Subscriber Management and Consultancy Services Pvt Ltd (with Spirit Infra Power as co-borrower), both backed by Chandra’s personal guarantees.
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Contradictory Claims: During recent Insolvency and Bankruptcy Code (IBC) proceedings, Chandra stated his net worth was only Rs 31.79 crore in 2024, sharply contradicting the figures previously provided to secure the defaulted loans.
NCLT Proceedings and Personal Insolvency Controversy
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Repayment Plan Dispute: The CBI action follows a severe public backlash regarding Chandra’s personal insolvency process, wherein creditors holding an 80.8% voting share approved a settlement of just Rs 6.25 crore from Chandra against massive admitted claims of Rs 22,006 crore.
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Tribunal Intervention: A special five-member bench of the National Company Law Tribunal (NCLT) recently stayed the approval of this controversial repayment plan due to a lack of a clear majority and restrained Chandra from alienating any assets.
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Dissenting Lenders: LICHFL, alongside HDFC Bank, Axis Bank, Canara Bank, RBL Bank, and Union Bank, vehemently opposed the settlement, labeling the payout unviable and unlawful.
