CBI files FIR against Essel Group Chairman Subhash Chandra for alleged Rs 1,322 crore fraud against LICHFL

CBI has filed an FIR against Essel Group Chairman Subhash Chandra and some other individuals for allegedly defrauding LICHFL (LIC Housing Finance Ltd) of Rs 1,322 crore between 2018 and 2026. LICHFL alleged that Chandra had submitted a 'net worth certificate' of Rs 59,113 crore in 2018 while availing credit facilities but in 2024 stated that his net worth was just Rs 31.7 crore. The FIR was registered on a complaint filed by LICHFL on Aug 31. According to the FIR, LICHFL had sanctioned two loan facilities totalling Rs 980 crore to four companies. A Rs 500-crore facility was sanctioned to Vasant Sagar Properties Pvt Ltd and Pan India Infraprojects Pvt Ltd, while another Rs 480 crore was given to Digital Subscriber Management and Consultancy Services Pvt Ltd and Spirit Infrapower and Multiventures Pvt Ltd.Chandra denied possessing net worth stated in certificates Both facilities were backed by personal guarantees furnished by Essel Group chairman Subhash Chandra. The complaint alleged that the loans were sanctioned on the basis of net-worth certificates submitted on behalf of Chandra. One certificate, issued in March 2018, allegedly showed his net worth at $6,197.6 million, equivalent to around Rs 59,113 crore, as of March 31, 2017. Another certificate put his net worth at Rs 40,562 crore. However, the complaint stated, during the subsequent insolvency proceedings, Subhash Chandra had denied possessing the net worth reflected in the certificates. He allegedly stated that his net worth in 2024 was Rs 31.79 crore and that even in 2017-18 it had not exceeded Rs 40,000 crore.

The outstanding amount against the Vasant Sagar facility was stated to be Rs 570.50 crore, while Rs 507.25 crore was outstanding against the Digital Subscriber facility. LICHFL alleged that Chandra, in collusion with the borrower companies and their directors, induced the housing finance company to release the funds by submitting false and inflated documents. It further alleged that the funds were subsequently misappropriated and assets were stripped to frustrate recovery efforts.