New Delhi, Sept 5: The Central Bureau of Investigation (CBI) has registered an FIR against media baron Subhash Chandra for allegedly inflating his net worth to secure loans totalling Rs 980 crore from Life Insurance Corporation Housing Finance Ltd (LICHFL), officials said on Saturday.
The lender has alleged that the loans later turned into defaults, causing a loss of more than Rs 1,322 crore to the public sector financial institution.
According to the FIR, LICHFL's complaint alleged that Chandra submitted net worth certificates that helped secure the sanction and disbursal of two loans — a Rs 500-crore facility to Vasant Sagar Properties Pvt Ltd, with Pan India Infra Projects Pvt Ltd as co-borrower, and a Rs 480-crore facility to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infra Power and Multi Ventures Pvt Ltd as co-borrower.
The Rs 500-crore loan was sanctioned for takeover, top-up and business expansion and was backed by a continuing guarantee executed by Chandra on March 28, 2018, the FIR said.
The Rs 480-crore facility was sanctioned under a rental securitisation scheme and was also secured by a continuing guarantee from Chandra, it alleged.
The lender claimed that a net worth certificate issued by DIM & Co on March 28, 2018, put Chandra's net worth at around Rs 59,000 crore. Another certificate issued by MPJ & Co on July 6, 2018, placed his net worth at Rs 40,562 crore.
Both loans subsequently went into default, according to LICHFL.
The FIR said that during subsequent insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth mentioned in the certificates submitted to LICHFL.
According to the FIR, Chandra valued his net worth at Rs 31.79 crore in 2024 and said his net worth during 2017-18 was not more than Rs 40,000 crore.
The CBI FIR alleges that Chandra acted in collusion with the borrower companies and their officials and directors to induce LICHFL to sanction the loans, which were subsequently misappropriated.
It further alleged that false documents were created to show an inflated net worth and induce the lender to release funds to the principal borrowers.
The agency has also alleged that the accused breached the trust placed by LICHFL and misappropriated the funds.
There was no immediate reaction from Chandra or the other accused named in the FIR.
