The Enforcement Directorate has registered a money laundering case against Essel Group founder Subhash Chandra over an alleged ₹1,322-crore fraud involving LIC Housing Finance. The probe follows a CBI FIR alleging that inflated net-worth certificates helped companies linked to Chandra secure two loans totalling ₹980 crore in 2018. Both facilities subsequently defaulted, while investigators are examining allegations of financial misrepresentation and fund diversion. Zee Entertainment said the case concerns Chandra in his personal capacity and certain promoter entities, without affecting its operations.
Subhash Chandra Money Laundering Case Sees ED Probe Rs 1,322-Crore LICHFL Loan Fraud
The Enforcement Directorate has initiated a probe into alleged loan fraud of Rs 980 crore in borrowings and Rs 1,322 crore in losses.
The Enforcement Directorate has booked media baron Subhash Chandra for money laundering on charges that inflated net-worth documents helped him get Rs 980 crore in loans.
Subhash Chandra's money laundering case is linked to two loan facilities extended by Life Insurance Corporation Housing Finance Limited (LICHFL) to his companies in 2018.
Officials said the ED registered the case under the Prevention of Money Laundering Act (PMLA) on the basis of a First Information Report of the Central Bureau of Investigation (CBI).
LIHFL had alleged that Chandra submitted inflated net-worth certificates to get the approval and disbursal of two loans which were not paid back. The CBI registered the case after that.
The complaint said a Rs 500-crore facility was extended to Vasant Sagar Properties Private Limited and Pan India Infra Projects Private Limited was a co-borrower.
The second loan of Rs 480 crore was extended to Digital Subscriber Management and Consultancy Services Private Limited with Spirit Infra Power and Multi Ventures Private Limited as co-borrowers.
Subhash Chandra Money Laundering Case and Net-Worth Certificates
LICHFL said Chandra submitted a certificate from DJM and Co dated March 28, 2018, showing his net worth at around Rs 59,000 crore.
The second loan facility was backed by a second certificate issued by MPJ and Co on July 6, 2018, pegging his net worth at Rs 40,562 crore.
Both loans later turned into non-performing assets and LICHFL’s total loss was pegged at Rs 1,322 crore in a complaint filed in August, the report said.
The CBI FIR alleged that Chandra later challenged the valuations in those certificates in proceedings under the Insolvency and Bankruptcy Code, 2016, the complaint said.
In 2017-18, his net worth was not more than Rs 40,000 crore, Chandra said, pegging it at Rs 31.79 crore in 2024, it said.
The FIR alleged that Chandra had colluded with the borrower companies and their directors to obtain loans on the basis of forged or inflated financial documents and syphoned off the proceeds for personal use.
These are still allegations and have not been proven in court. The original report had mentioned that after registering the case by the ED, a comment from Chandra was awaited.
The ED action is against Chandra in his personal capacity and certain promoter entities and does not impact the company's operations, Zed Entertainment Enterprises Ltd said.
Also Read: Parekh Aluminex Bank Fraud: ED Attaches ₹53.95 Crore in ₹2,296-Crore Probe
LICHFL Challenge and the Insolvency Repayment Plan
There is also the loan dispute, which overlaps with proceedings relating to the insolvency of Chandra’s personal estate, where the lenders have objected to the proposed distribution available to creditors.
LICHFL was one of the lenders that had moved the National Company Law Appellate Tribunal (NCLAT) against a repayment plan approved by the National Company Law Tribunal (NCLT).
This plan would allow creditors to recover about Rs 6.5 crore from Chandra’s personal estate toward total claims of about Rs 22,006 crore.
Claims are much higher than the proposed recovery. The ED investigation and repayment plan are separate proceedings, but both are connected to attempts to resolve the financial dispute.
The ED probe is likely to look into the alleged money trail and the circumstances under which the loan transactions were done, they said, adding that no further action has been announced by the officials in the information shared.
The pace of progress will also be influenced by evidence collected by investigators and by decisions in the insolvency appeal. Sprouts News will continue to track official statements and court proceedings.
