The agency alleged Chandra submitted net worth certificates while guaranteeing loans to two companies that later defaulted.
The Central Bureau of Investigation (CBI) has filed an FIR against Essel Group chairperson and Zee founder Subhash Chandra for allegedly misleading LIC Housing Finance Limited (LICHFL) about his net worth when he stood guarantee for two loans that went into default, leaving the public sector lender with a ₹1,322 crore loss.
On CBI’s request, immigration authorities issued a look-out circular against Chandra at all airports, ports and land entry/exit points to ensure he doesn’t leave the country.
The Enforcement Directorate is also examining the matter but is yet to begin a formal probe, said an officer aware of the matter.
HT called Chandra and left him text messages, but did not receive a response. An email query to Zee Group’s corporate communications did not receive a response either.
CBI names Chandra, companies and associates
In a first information report (FIR) filed on August 31, the central agency named Chandra as accused number 1 under sections pertaining to criminal conspiracy, cheating and criminal breach of conduct, along with three companies, two individuals and other “unknown” people.
The allegations pertain to loans LICHFL extended to two companies – Vasant Sagar Properties Pvt Ltd and Digital Subscriber Management and Consultancy Services Pvt Ltd – for business expansion and rental securitisation, with Chandra providing personal guarantees for the borrowings.
Two loans at centre of probe
According to LICHFL’s CBI complaint, which is part of the FIR, Vasant Sagar Properties Pvt Ltd was given a loan facility of ₹500 crore, with Pan India Infra Projects Pvt Ltd as co-borrower, as a home entity loan for takeover and top-up of business expansion.
Similarly, a ₹480 crore loan was given to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infrapower and Multiventures Pvt Ltd as a co-borrower under a rental discounting facility.
A rental discounting facility, also known as lease rental discounting, is a loan against future rental income.
Net worth certificates used as guarantees
In both instances, LICHFL in its complaint said, the lending decisions were taken based on net worth certificates Chandra submitted in 2018 as his personal guarantee.
For the ₹500 crore loan, Chandra submitted certification saying his net worth, as on March 31, 2017, was ₹59,113 crore. For the ₹480 crore loan, Chandra gave a net worth certificate on July 6, 2018, stating that his net worth was ₹40,562 crore.
Both loan accounts defaulted and the current loss to LICHFL, according to the FIR, was ₹1,322 crore.
Chandra later disputed claimed net worth
The CBI FIR said that during the subsequent personal insolvency proceedings, Chandra “categorically denied having the net worth as stated in the certificates”, which he submitted to LICHFL to cause approval and disbursal of the loans.
It added that during the insolvency process, Chandra said his net worth in 2024 was ₹31.79 crore and that “even in 2017-18, he did not have the net worth of more than ₹40,000 crore”.
In its complaint, LICHFL said, “It is quite apparent that Subhash Chandra and the other accused persons have connived among themselves with common criminal and dishonest intention to defraud the complainant”.
The FIR also named Vasant Sagar Properties, its director Pankaj Suroliya, Pan India Infrastructure, Digital Subscriber Management and its director Amish Pandya, Spirit Infrapower and its director Rajeev Dholakia and unknown others.
LICHFL alleges collusion and fund misuse
LICHFL said “Chandra had been acting in collusion with the borrowers Vasant Sagar, Pan India Infraprojects Pvt Ltd, Digital Subscriber Management and Spirit Infrapower and their officers and directors defrauded and cheated LICHFL into advancing the loans to the borrower entities, which have since misappropriated the same.”
It further accuses Chandra of creating “false documents to denote inflated and false net worth to cheat LICHFL into deploying funds to the Principal Borrowers”.
“The accused persons have publicly disclosed their intention to leave India and are likely to do so, unless a FIR is registered and investigation is undertaken at the earliest to trace the proceeds of the loan and assets of the accused persons”, LICHFL said.
An officer cited above said, “We are investigating why he misled the creditor to avail the loans. Either he was lying then, or is lying now”.
