The Central Bureau of Investigation has registered an FIR against media baron Subhash Chandra for allegedly inflating his net worth to secure loans from Life Insurance Corporation Housing Finance Ltd (LICHFL). According to reports from The Hindu BusinessLine, the case involves loans that subsequently went into default, causing over ₹1,322 crore loss to the public sector lender. The FIR was registered on August 31 and alleges that Chandra submitted fraudulent net worth certificates to secure approval and disbursal of two loans totalling ₹980 crore. The case follows a complaint by LIC Housing Finance alleging that Chandra, along with borrower companies and their directors, used false and inflated net-worth documents to secure loans from the home financier. The CBI has registered the case for criminal conspiracy, cheating and criminal breach of trust, among other offences.
As reported by The Hindu BusinessLine, the complaint concerns two major facilities extended to Chandra's entities. The ₹500 crore facility was sanctioned to Vasant Sagar Properties Pvt Ltd with Pan India Infraprojects Pvt Ltd as co-borrower, while the ₹480 crore facility was extended to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infrapower and Multiventures Pvt Ltd as co-borrower. According to the FIR, both loans were backed by continuing guarantees executed by Chandra. The ₹500-crore Vasant Sagar facility was sanctioned as a home entity loan for takeover, top-up and business expansion, and was secured by a continuing guarantee dated March 28, 2018, executed by Chandra. The ₹480-crore Digital facility was sanctioned as a rental discounting facility under a rental securitisation scheme, and was secured by a continuing guarantee also executed by Chandra on August 10, 2018. The FIR reveals that the ₹500-crore Vasant Sagar loan was sanctioned partly on the basis of a net-worth certificate submitted by Chandra that put his net worth at ₹59,113.21 crore as of March 31, 2017, issued by DIM & Co on March 28, 2018. The ₹480-crore Digital facility was sanctioned partly on the basis of another certificate stating his net worth at ₹40,562 crore, issued by chartered accountants MPJ & Co on July 6, 2018. The outstanding amount for the Vasant Sagar facility stood at ₹570.50 crore, while the Digital loan outstanding was ₹507.25 crore, according to LIC Housing Finance's complaint.
According to the FIR reported by The Hindu BusinessLine, both facilities subsequently went into default. During subsequent proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL. The complaint alleges that during these proceedings, Chandra categorically denied having the net worth stated in the certificates submitted to LICHFL. The FIR alleges that Chandra created false documents to denote inflated and false net worth to cheat LICHFL into deploying funds to the principal borrowers. The CBI has named Chandra, Vasant Sagar Properties, its director Pankaj Suroliya, Pan India Infraprojects, Digital Subscriber Management and Consultancy Services, its director Amish Pandya, Spirit Infrapower and Multiventures, its director Rajeev Dholakia, as well as unknown others and unknown public servants as accused. Under personal insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Chandra proposed a repayment plan of ₹6.25 crore against total admitted creditor claims of over ₹22,000 crore. While the plan saw initial NCLT approval, it faced strong resistance from financial institutions like LICHFL. Chandra's office clarified that the large claim figures stemmed from corporate loan personal guarantees rather than direct personal borrowings.
During a recent hearing on a repayment plan challenge, Subhash Chandra contested the constitution of the NCLT bench, asserting that it does not possess the power to create such a bench. This critical argument was made as the appellate tribunal is scheduled to address the issues again soon, particularly after the NCLT bench had put a hold on the approval of the repayment plan. The NCLAT has ordered the Supertech committee to file a status report within two weeks, which will detail construction commencement and work awarding for sixteen NBCC-managed projects. The tribunal also directed the committee to address unpaid employee salaries for three months. The next hearing for this matter is scheduled for September 14, 2026. LIC Housing Finance is among lenders challenging an NCLT-approved repayment plan in Chandra's personal insolvency proceedings, with the company having an admitted claim of approximately ₹1,322.39 crore. However, a newly constituted five-member Special Bench of the NCLT, headed by NCLT President Justice (retd) Anupinder Singh Grewal, has stayed the Third Member's 25 August order approving Chandra's repayment plan. The bench held that under Section 419(5) of the Companies Act, 2013, there was no clear majority view among the three members who had earlier considered the matter, so the Third Member's opinion could not be given effect. The bench also directed that Chandra 'shall not alienate any assets whatsoever either directly or indirectly,' and set the next hearing for September 23, 2026, where it will examine the repayment plan afresh.
As reported by The Hindu BusinessLine, the FIR alleges that Chandra acted in collusion with the borrowers and their officers and directors to defraud LICHFL. The complaint states that Chandra and the borrower entities defrauded and cheated LICHFL into advancing the loans, which have since been misappropriated. The FIR alleges that the accused persons breached the trust reposed by LICHFL in misappropriating the funds, creating false documents to denote inflated and false net worth to cheat LICHFL into deploying funds to the principal borrowers. LIC Housing Finance alleged that Chandra had acted in collusion with the borrower companies and their officers and directors to induce the lender to advance the loans, and that false documents were created to show an inflated net worth. The CBI complaint comes amid Chandra's ongoing personal insolvency proceedings before the National Company Law Tribunal (NCLT), adding another major legal challenge for the Essel Group chairman who is already facing scrutiny over his personal insolvency proceedings.
