After CBI Now ED Books Subhash Chandra in ₹1,3233 Crore LIC Housing Finance Loan Fraud Case
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The Enforcement Directorate (ED) has registered a money laundering case against media baron Subhash Chandra over an alleged loan fraud that caused a ₹1,322 crore loss to Life Insurance Corporation Housing Finance Limited (LICHFL), officials said on Monday (November 2, 2026).
CBI FIR Triggers Financial Crime Investigation
The federal financial probe agency initiated criminal proceedings under the Prevention of Money Laundering Act (PMLA) after taking cognisance of a Central Bureau of Investigation (CBI) FIR lodged on a complaint from LICHFL. The complaint alleges that the former Rajya Sabha MP used inflated net-worth certificates to secure two separate credit facilities totalling ₹980 crore, which subsequently turned into non-performing assets and resulted in a cumulative loss of ₹1,322 crore to the lender.
The loans under legal scrutiny include a ₹500 crore facility extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited serving as co-borrower, and a ₹480 crore facility granted to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrower. The ₹500 crore Vasant Sagar loan was approved for takeover, top-up, and business expansion, whereas the ₹480 crore digital facility was disbursed under a rental-discounting scheme. Both facilities were secured by continuing personal guarantees executed by Chandra on March 28, 2018.
Discrepancies Surface in Net-Worth Valuation Audit
Investigating authorities flagged massive discrepancies between the net-worth figures submitted to secure the credit lines and disclosures made during insolvency proceedings. LICHFL stated that net-worth certificates issued by DJM and Co on March 28, 2018, certified Chandra's personal wealth at around ₹59,000 crore, while a secondary certificate issued by chartered accountants MPJ and Co on July 6, 2018, listed his net worth at ₹40,562 crore.
However, during proceedings under the Insolvency and Bankruptcy Code (IBC), 2016, Chandra disputed those evaluations. The FIR notes that the industrialist pegged his net worth in 2024 at just ₹31.79 crore, while maintaining that his 2017-18 valuation did not exceed ₹40,000 crore. The CBI complaint alleges that Chandra acted in collusion with the borrowing companies, their officers, and directors to defraud and cheat LICHFL into advancing the loans, which were subsequently misappropriated.
Recovery Disputes Head to NCLAT
The registration of the PMLA case comes amid ongoing legal battles over debt recovery. LICHFL is among the primary creditors that challenged a National Company Law Tribunal (NCLT) resolution plan before the National Company Law Appellate Tribunal (NCLAT).
The contested NCLT plan allows creditors to recover approximately ₹6.5 crore from Chandra's personal estate against total outstanding claims amounting to roughly ₹22,006 crore. Officials indicated that the ED probe will track the trail of funds to determine whether loan proceeds were diverted or laundered through shell entities. Official comment from Chandra was awaited at the time of publication.
