CBI FIR against Subhash Chandra over alleged inflated net worth, Rs 980-crore loans

The CBI has registered an FIR against media baron Subhash Chandra for allegedly inflating his net worth to secure loans worth Rs 980 crore from LIC Housing Finance Limited (LICHFL), with the lender claiming the subsequent defaults caused a loss of more than Rs 1,322 crore.

The FIR was registered on the basis of a complaint by LICHFL, which alleged that Chandra submitted net-worth certificates that helped secure the sanction and disbursal of two loans.

The first was a Rs 500-crore facility extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as the co-borrower. The second was a Rs 480-crore facility given to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as the co-borrower.

According to the complaint, the Rs 500-crore facility was sanctioned for takeover, top-up and business expansion and was secured by a continuing guarantee executed by Chandra on March 28, 2018.

The Rs 480-crore facility was sanctioned as a rental-discounting facility under a rental-securitisation scheme and was also backed by a continuing guarantee executed by Chandra, the FIR alleges.

LICHFL claimed that a net-worth certificate issued by DJM and Co. on March 28, 2018, put Chandra's net worth at around Rs 59,000 crore.

Another certificate, issued by chartered accountants MPJ and Co. on July 6, 2018, valued his net worth at Rs 40,562 crore. The lender said this certificate was used in sanctioning the Rs 480-crore facility.

Both loans subsequently went into default, according to the complaint.

The FIR alleges that during insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL.

It said Chandra subsequently pegged his net worth in 2024 at Rs 31.79 crore and his net worth in 2017-18 at no more than Rs 40,000 crore.

The CBI has alleged that Chandra acted in collusion with the borrower companies and their officers and directors to defraud LICHFL. It accused the former Rajya Sabha MP of creating false documents showing an inflated net worth to induce the lender to release funds.

The FIR further alleges that the accused misappropriated or misapplied the funds and stripped assets of the personal guarantor to frustrate recovery by LICHFL.

The housing finance company is among the lenders that had approached the National Company Law Appellate Tribunal against a recent NCLT repayment plan under which creditors would recover only about Rs 6.5 crore from Chandra's personal estate against claims of around Rs 22,006 crore.

There was no immediate reaction from Chandra to the allegations.