Source NDTV
New Delhi: The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group Chairman Subhash Chandra for allegedly submitting inflated net worth certificates to secure loans totaling ₹980 crore from LIC Housing Finance Ltd (LICHFL). The subsequent loan defaults have reportedly caused a loss of over ₹1,322 crore to the public sector financial institution.
According to the CBI complaint, LICHFL alleges that Chandra acted in collusion with multiple borrower companies and their directors to secure two major financial facilities in 2018:
₹500 crore facility to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as the co-borrower.
₹480 crore facility to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infrapower and Multiventures Pvt Ltd as the co-borrower.
Both loans were secured by continuing guarantees executed by Chandra.
The Net Worth Discrepancy at the Core of the Probe
The investigation centers on stark discrepancies between the net worth certificates submitted to LICHFL in 2018 and the figures Chandra later declared during personal insolvency proceedings.
2018 Declarations: A certificate issued by DIM & Co in March 2018 valued Chandra’s net worth at approximately ₹59,000 crore. Another certificate from chartered accountants MPJ & Co in July 2018 placed it at ₹40,562 crore.
Insolvency Proceedings: During subsequent proceedings under the Insolvency and Bankruptcy Code (IBC) in 2024, Chandra reportedly pegged his net worth at just ₹31.79 crore, and stated that his net worth in 2017-18 did not exceed ₹40,000 crore.
The FIR accuses Chandra of creating false documents to project an inflated net worth, which induced LICHFL to release the funds to the principal borrowers. The funds were subsequently misappropriated, resulting in massive losses for the lender.
The charges include criminal conspiracy, cheating, criminal breach of trust, and extending undue benefits. The CBI’s action comes as Chandra simultaneously faces scrutiny in ongoing personal insolvency proceedings before the National Company Law Tribunal (NCLT).
