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The Enforcement Directorate has registered a money-laundering case against Subhash Chandra over an alleged ₹1,322 crore loan fraud.
What Are the Allegations Against Subhash Chandra?
The Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act (PMLA) against media businessman and former Rajya Sabha MP Subhash Chandra in connection with an alleged loan fraud involving LIC Housing Finance Limited (LICHFL).
The investigation follows a Central Bureau of Investigation (CBI) FIR based on a complaint filed by the housing finance company. LICHFL alleged that Chandra submitted inflated net-worth certificates to secure loans worth ₹980 crore and subsequently defaulted on the repayments.
According to the complaint, the defaults resulted in an alleged financial loss of ₹1,322 crore to the lender. A response from Chandra to the allegations was awaited.
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Which Companies Received the Loans?
The complaint concerns two financing arrangements involving different borrower entities. The first was a ₹500 crore facility extended to Vasant Sagar Properties Private Limited, with Pan India Infraprojects Private Limited as co-borrower.
The second involved a ₹480 crore facility sanctioned to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infrapower and Multi Ventures Private Limited as co-borrower.
The ₹500 crore facility was sanctioned for takeover, top-up and business expansion purposes, supported by a continuing guarantee executed by Chandra on March 28, 2018.
The ₹480 crore facility was sanctioned under a rental-discounting arrangement and was also secured through a continuing guarantee executed by him.
What Discrepancies Were Found in Net-Worth Certificates?
According to LICHFL, a certificate issued by DJM and Co on March 28, 2018, placed Chandra’s net worth at approximately ₹59,000 crore.
Another certificate, issued by chartered accountants MPJ and Co on July 6, 2018, assessed his net worth at ₹40,562 crore. The lender alleged that these documents were used to support the loan approvals.
However, during subsequent proceedings under the Insolvency and Bankruptcy Code, Chandra reportedly disputed possessing the wealth stated in those certificates.
The CBI complaint states that he declared his net worth in 2024 as ₹31.79 crore and his net worth during 2017-18 as not exceeding ₹40,000 crore.
What Further Proceedings Are Involved?
The CBI FIR alleges that Chandra acted in collusion with the borrowing companies and their officials to obtain the loans through misleading financial documents.
LICHFL was also among the lenders that approached the National Company Law Appellate Tribunal, opposing a repayment plan allowing creditors to recover approximately ₹6.5 crore from Chandra’s personal estate against claims of about ₹22,006 crore.
The ED’s case now examines the alleged financial wrongdoing under money-laundering legislation, based on the predicate offence registered by the CBI. The allegations remain subject to investigation and legal proceedings.
