NEW DELHI: The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group founder Subhash Chandra for allegedly inflating his net worth to avail loans from Life Insurance Corporation Housing Finance Ltd (LICHFL), which became default, causing over Rs 1,322 crore loss to the public sector lender, officials said Saturday.
LICHFL has alleged in its complaint, which is now part of the FIR, that Chandra submitted net worth certificates that were used to secure approval and disbursal of two loans totalling Rs 980 crore.
The complaint concerns a Rs 500 crore facility extended to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower, and a Rs 480 crore facility extended to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd as co-borrower, the FIR alleged.
According to the FIR, Chandra submitted net-worth certificates to secure the guarantees — one from DJM & Co in March 2018, valuing his net worth at around Rs 59,113 crore, and another from MPJ & Co in July 2018, putting it at Rs 40,562 crore.
Both loans later turned non-performing, with LICHFL saying the outstanding amounts stood at roughly Rs 570.5 crore and Rs 507.25 crore, respectively.
The two loans subsequently went into default, according to LICHFL.
According to the FIR, during subsequent proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL.
During the proceedings, the noted media baron pegged his net worth in 2024 at Rs 31.79 crore, and in 2017-18 at no more than Rs 40,000 crore, the FIR said.
"Chandra had been acting in collusion with the borrowers Vasant Sagar Properties Pvt Ltd, Pan India Infraprojects Pvt Ltd, Digital Subscriber Management and Consultancy Services Pvt Ltd, and Spirit Infrapower and Multiventures Pvt Ltd and their officers and directors, defrauded and cheated LICHFL into advancing the loans to the borrower entities, which have since misappropriated the same," the FIR alleged.
It also alleged that Chandra created false documents to denote inflated and false net worth to cheat LICHFL into deploying funds to the principal borrowers.
"The accused persons breached the trust reposed by LICHFL in misappropriating the funds," it alleged.
The FIR also cites LICHFL's assertion that the accused had "publicly disclosed their intention to leave India", which it says warranted urgent registration of the case to trace loan proceeds and assets.
