CBI books Subhash Chandra over alleged inflated net worth, Rs 1,322 crore LICHFL loss

The CBI has registered an FIR against media baron Subhash Chandra for allegedly inflating his net worth to avail loans from Life Insurance Corporation Housing Finance Ltd (LICHFL), which later went into default, causing a loss of over Rs 1,322 crore to the public sector lender, officials said on 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.

There was no immediate reaction from the accused named in the FIR.

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 complaint, the Rs 500-crore Vasant Sagar facility was sanctioned as a home entity loan for takeover, top-up and business expansion, and was secured by a continuing guarantee dated March 28, 2018, executed by Chandra.

The Rs 480-crore Digital facility was sanctioned as a rental discounting facility under a rental securitisation scheme under a different loan account and was secured by a continuing guarantee, also executed by Chandra, it alleged.

According to the lender, the net worth certificate submitted by Chandra was issued by DIM & Co on March 28, 2018, certifying his net worth at around Rs 59,000 crore.

LICHFL said the Digital facility was sanctioned partly on the basis of a net worth certificate submitted by Chandra and issued by chartered accountants MPJ & Co on July 6, 2018. The certificate put his net worth at Rs 40,562 crore.

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 industrialist 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 show an 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.