Federal investigators book Subhash Chandra for alleged loan fraud
Federal investigators have registered a criminal case against Essel Group chairman Subhash Chandra for allegedly fabricating financial documents to secure loans from LIC Housing Finance Ltd (LICHFL). Officials accuse him of submitting grossly inflated personal net worth certificates in 2018 to obtain two credit facilities totaling Rs 980 crore. Both loans eventually defaulted, leading to a severe financial loss exceeding Rs 1,322 crore for the lender between 2018 and 2026. This investigation follows a long string of financial troubles for the media tycoon, who once built one of India's largest television broadcasting networks. Documents indicate that the initial Rs 500 crore loan went to Vasant Sagar Properties Pvt Ltd, alongside co-borrower Pan India Infra Projects Pvt Ltd. To secure this facility on March 28, 2018, DIM & Co issued a certificate claiming Chandra possessed a net worth of Rs 59,113 crore. Later that year, LICHFL approved a second facility of Rs 480 crore for Digital Subscriber Management and Consultancy Services Pvt Ltd. This approval relied on a July 6 certificate from MPJ & Co valuing his assets at Rs 40,562 crore.
Conflicting Claims in Court
Investigators noted a stark contrast during recent proceedings under the Insolvency and Bankruptcy Code. Chandra reportedly confessed his actual net worth in 2024 stood at merely Rs 31.79 crore, adding that his assets never exceeded Rs 40,000 crore during the 2017-2018 periods. The FIR states he colluded with borrowing companies to misappropriate funds and breach lender trust. Simultaneously, the National Company Law Tribunal halted a separate personal insolvency repayment strategy for the chairman. Under that suspended plan, creditors would have recovered only Rs 6.25 crore from his personal estate to settle extensive admitted claims of Rs 22,006 crore. Chandra argues this multi-crore figure reflects corporate debt rather than personal borrowing.
