The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group chairman Subhash Chandra and others over allegations that inflated net-worth certificates were used to secure loans worth ₹980 crore from LIC Housing Finance Ltd (LICHFL). According to officials and the lender’s complaint, the two loan accounts subsequently turned into defaults, resulting in an alleged loss of more than ₹1,322 crore to the public-sector lender.
The case relates to two separate credit facilities sanctioned in 2018. The first, worth ₹500 crore, was extended to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower, for takeover, top-up and business expansion. The second, worth ₹480 crore, was sanctioned to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd as co-borrower, under a rental discounting arrangement. Chandra had provided continuing personal guarantees for both facilities, the FIR alleged.
A key issue in the CBI case is the discrepancy between the net-worth figures submitted during the loan-sanction process and figures cited during subsequent insolvency proceedings. According to LICHFL, a certificate issued by DIM & Co in March 2018 valued Chandra’s net worth at around ₹59,000 crore. Another certificate issued by MPJ & Co in July 2018 put his net worth at ₹40,562 crore. The lender said the certificates were among the factors considered while sanctioning the facilities.
The two accounts later became non-performing assets, according to LICHFL. The FIR further alleges that during subsequent proceedings under the Insolvency and Bankruptcy Code, Chandra did not accept the net-worth figures contained in the certificates submitted to the lender. The CBI document said he had pegged his net worth at ₹31.79 crore in 2024 and at no more than ₹40,000 crore for 2017-18.
The agency has alleged collusion between Chandra, the borrower companies and their directors and officers. The FIR alleges that the accused “defrauded and cheated LICHFL into advancing the loans to the borrower entities” and that false documents were created to show an inflated net worth. It further alleged that the accused “breached the trust reposed by LICHFL in misappropriating the funds.” These remain allegations and will be subject to investigation and legal proceedings.
There was no immediate reaction from Chandra or the other accused named in the FIR. The CBI investigation comes amid separate insolvency proceedings involving Chandra, where lenders have also raised questions over the sharp fall in his declared net worth and the recovery available to creditors.
