Subhash Chandra probe: ED registers case over LIC Housing loans

The Subhash Chandra probe has expanded with the Enforcement Directorate registering a money laundering case over loans from LIC Housing Finance Limited, officials said in New Delhi on Monday, November 2. The lender alleges that defaults caused a loss of Rs 1,322 crore.

The ED case under the Prevention of Money Laundering Act follows a CBI FIR based on the lender's complaint. Chandra, the Essel Group chairperson and Zee founder, had provided personal guarantees for the borrowings.

Lender questions certificates used for loan approvals

LIC Housing Finance alleges that net-worth certificates supplied by Chandra were used to obtain two facilities with a combined value of Rs 980 crore. The accounts later defaulted, according to the complaint.

Vasant Sagar Properties Private Limited received the Rs 500 crore facility. Pan India Infra Projects Private Limited shared the borrowing obligation. The other, worth Rs 480 crore, went to Digital Subscriber Management and Consultancy Services Private Limited.

The complaint alleges that Chandra's declared wealth was inflated to secure approval and disbursal. A July 2018 certificate put his net worth at Rs 40,562 crore, while another certificate cited a higher figure of around Rs 59,000 crore.

During later insolvency proceedings, Chandra disputed having the wealth recorded in the certificates, according to the CBI FIR. It says he placed his 2024 net worth at Rs 31.79 crore and said it had not exceeded Rs 40,000 crore in 2017-18.

The Subhash Chandra probe concerns allegations, and a response from him was awaited in the reports. Zee Entertainment Enterprises Limited said the ED matter concerned him personally and the promoter entities, with no effect on the company or its operations.

LIC Housing Finance is also contesting a repayment arrangement in the insolvency proceedings. The reports give different figures for that plan, but both place admitted creditor claims at roughly Rs 22,006 crore.

The CBI has accused Chandra and others of offences involving conspiracy and cheating. Those accusations and the lender's claims remain matters for investigation and legal proceedings.

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