₹1,322 Crore Fraud Case, CBI Say Subhash Chandra, Your Loan Has Been Recalled

The Central Bureau of Investigation (CBI) has registered an FIR against Zee founder and Essel Group chairman Subhash Chandra, several companies and their directors over allegations that his net worth was inflated to secure loans from LIC Housing Finance Ltd (LICHFL). The loans later turned into defaults, with the public sector lender alleging a loss of more than ₹1,322 crore, beside interest and other charge. The FIR was registered by the CBI Banking Securities Fraud Branch on August 31, based on a written complaint filed by Neeta Menghani, general manager of LICHFL. According to the FIR, LICHFL has alleged wrongful loss of more than ₹1,322 crore in connection with two loan facilities sanctioned in 2018. The facilities were reportedly secured by personal guarantees allegedly executed by Chandra. Beside Chandra, the FIR names Vasant Sagar Properties Pvt Ltd and its director Pankaj Suroliya, Pan India Infrastructure Pvt Ltd; Digital Subscriber Management and Consultancy Services Pvt Ltd and its director Amish Pandya; Spirit Infra Power and Multi Ventures Pvt Ltd and its director Rajeev Dholakia. The complaint also names unknown public servants and others. LIC Housing Finance has alleged that it sanctioned a ₹500 crore loan facility to Vasant Sagar Properties Pvt Ltd and Pan India Infra Projects Pvt Ltd. A separate ₹480 crore facility was reportedly granted to Digital Subscriber Management and Consultancy Services Pvt Ltd and Spirit Infra Power and Multi Ventures Pvt Ltd. Both facilitie were allegedly backed by continuing guarantee letters executed by Chandra. The first guarantee was reportedly executed on March 28, 2018, while the second was executed on August 10, 2018. The complaint alleges that LICHFL relied on net worth certificate submitted in Chandra name while sanctioning the facilities. For the Vasant Sagar loan, a certificate dated March 28, 2018, allegedly placed his net worth at USD 6,197.62 million, described in the document as approximately ₹59,113.21 crore as of March 31, 2017. For the second loan facility, another certificate dated July 6, 2018, allegedly showed Chandra’s net worth at ₹40,562 crore. The CBI investigation will now examine the allegations surrounding the loan applications, guarantees, financial documents and subsequent defaults. Since the matter is at the FIR and investigation stage, the allegation against Chandra and the other accused have not been established in court.