CBI Files Case Against Subhash Chandra Over Allegedly Inflated Net Worth for Rs 980 Crore Loans

The Central Bureau of Investigation (CBI) has registered a case against Essel Group chairman Subhash Chandra and others over allegations that inflated net worth certificates were used to secure loans worth Rs 980 crore from LIC Housing Finance Ltd (LICHFL).

According to the case, the loans later went into default, allegedly causing losses of more than Rs 1,322 crore to the lender.

The CBI investigation focuses on two credit facilities sanctioned in 2018. LICHFL has alleged that the loans were approved and disbursed based on net worth certificates and personal guarantees submitted by Subhash Chandra.

One of the certificates reportedly valued Chandra's net worth at Rs 59,113 crore. However, during later insolvency proceedings, he reportedly stated that his net worth in 2024 stood at Rs 31.79 crore.

The first loan facility of Rs 500 crore was granted to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd named as a co-borrower. The facility was sanctioned for takeover, top-up and business expansion and was backed by a continuing personal guarantee executed by Chandra in March 2018.

According to the complaint, a net worth certificate issued on the same date placed Chandra's net worth at Rs 59,113 crore.

The second credit facility of Rs 480 crore was extended to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd acting as co-borrowers. The loan was sanctioned under a rental securitisation scheme and was also backed by a continuing guarantee.

A separate certificate issued in July 2018 reportedly assessed Chandra's net worth at Rs 40,562 crore.

Both loan facilities subsequently went into default.

The FIR alleges that during later proceedings under the Insolvency and Bankruptcy Code, Chandra disputed the net worth figures mentioned in the certificates. He reportedly stated that his net worth was Rs 31.79 crore in 2024 and had not exceeded Rs 40,000 crore during 2017-18.

The CBI has alleged that Chandra, along with the borrower and co-borrower companies and their officials, acted in collusion to submit allegedly false and inflated documents to induce LICHFL to sanction and disburse the loans.

The agency has further alleged that the funds were misappropriated and that the lender suffered losses exceeding Rs 1,322 crore between 2018 and 2026.

The development comes amid separate personal insolvency proceedings involving Chandra and repayment claims linked to personal guarantees provided for loans taken by companies associated with the Essel Group.

In the insolvency proceedings, creditors have admitted claims of approximately Rs 22,006 crore against Chandra's personal guarantees, while a proposed repayment plan would have allowed creditors to recover around Rs 6.25 crore from his personal estate.

Chandra has maintained that the Rs 22,006 crore figure does not represent money personally borrowed by him.

The repayment plan has been put on hold following legal challenges by dissenting creditors, including Union Bank of India, Canara Bank and LIC Housing Finance Ltd. A special NCLT bench also directed Chandra not to sell or transfer his properties, directly or indirectly.

The matter remains under legal consideration, while the NCLAT has deferred further proceedings to October 7.