The Central Bureau of Investigation (CBI) has registered a major fraud case against Essel Group chairman Subhash Chandra and several others. The action follows a complaint by LIC Housing Finance Limited (LICHFL), alleging a massive loss of over ₹1,322 crore caused by fake documents and hidden facts.
According to the CBI FIR, LICHFL granted two credit facilities totaling ₹980 crore in 2018 to companies linked to Subhash Chandra. To secure these loans, Chandra acted as a personal guarantor and submitted official certificates claiming his net worth was over ₹59,000 crore in 2017 and over ₹40,000 crore in 2018. However, both loan accounts defaulted and became non performing assets. During personal insolvency proceedings in 2024, Chandra shocked lenders by claiming his real net worth was just ₹31.79 crore. He also denied ever having the multi thousand crore net worth shown in the earlier 2018 loan documents.
LICHFL accused Chandra of fabricating financial records to cheat the public sector lender. Including accumulated interest and unpaid dues, the total loss reached ₹1,322 crore. The CBI has also named executives from firms like Vasant Sagar Properties and Spirit Infrapower in the FIR. Citing flight risk, authorities issued a Look Out Circular to stop Subhash Chandra from leaving India. Officers are now investigating whether the borrowed money was illegally diverted or siphoned off.
