The central bureau of investigation (CBI) has registered a first information report (FIR) against Essel Group chairman and Zee founder Subhash Chandra, naming him as the primary accused in an alleged fraud of over ₹1,322 crore against LIC Housing Finance Limited (LICHFL). The FIR was filed by the CBI's banking security and fraud branch on the basis of a written complaint from LICHFL general manager Neeta Menghani, based at the company's corporate office in Mumbai's Cuffe Parade.
The charges include criminal conspiracy, cheating, misappropriation of funds, criminal breach of trust and criminal misconduct. Along with Mr Chandra, seven others including company directors and corporate entities have been named as accused.
The Loans: Two Facilities, ₹980 Crore Sanctioned
At the centre of the case are two separate loan facilities that LICHFL extended to a set of companies between 2018 and subsequent years, all carrying personal guarantees executed by Chandra.
The first was a ₹500 crore facility sanctioned to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower. The second was a ₹480 crore digital loan facility structured as a Rental Discounting facility under a Rental Securitisation scheme sanctioned to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infrapower and Multiventures Pvt Ltd as co-borrower.
In both cases, the lending decisions were taken on the basis of net worth certificates that Chandra submitted to LICHFL in 2018.
The Net Worth Certificates: The Core of the Allegation
This is where the case turns. For the Vasant Sagar loan, Chandra submitted a certificate dated 28 March 2018 issued by chartered accountants DJM and Co declaring his net worth at approximately ₹59,113 crore as of 31 March 2017.
For the second digital loan facility, he submitted a certificate dated 6 July 2018 — issued by chartered accountants MPJ and Co. — certifying his net worth at ₹40,562 crore.
Both certificates, LICHFL alleges, were instrumental in securing the sanction and disbursement of the combined ₹980 crore in facilities.
Both loan accounts subsequently went into default.
The most striking element of the LICHFL complaint is what emerged during insolvency proceedings years later. In the course of proceedings under the Insolvency and Bankruptcy Code (IBC) for Mr Chandra's personal insolvency resolution, he reportedly denied having the net worth as stated in the 2018 certificates — the very certificates that had been used to obtain the loans. The complaint also states that even at the time those certificates were issued in 2017-18, his actual net worth did not exceed ₹40,000 crore.
LICHFL, in its complaint to CBI, alleged that Mr Chandra and the other accused persons "connived among themselves with common criminal and dishonest intention to defraud the complainant." The complaint further noted that the accused had publicly indicated their intention to leave India, and urged CBI to register an FIR at the earliest so that assets and proceeds of the loan could be traced before that occurred.
Apart from Mr Chandra, the FIR names Vasant Sagar Properties Pvt Ltd and its director Pankaj Suroliya; Pan India Infrastructure Pvt Ltd; Digital Subscriber Management and Consultancy Services Pvt Ltd and its director Amish Pandya; Spirit Infrapower and Multiventures Pvt Ltd and its director Rajeev Dholakia; along with unknown others.
The CBI case comes against the backdrop of a separate and contentious insolvency proceeding. Last month, the national company law tribunal (NCLT) approved a personal insolvency repayment plan under which Mr Chandra would pay just ₹6.5 crore — of which ₹6.25 crore would go to creditors and ₹25 lakh toward insolvency process costs — against total creditor claims of approximately ₹22,006 crore.
LICHFL was among the lenders that had approached the national company law appellate tribunal (NCLAT) opposing that plan, arguing against a settlement that would allow recovery of only around ₹6.5 crore against claims of roughly ₹22,006 crore. A five-member bench subsequently stayed the NCLT order.
There has been no immediate response from any of the accused named in the FIR.
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