Personal Insolvency Proceedings Had Earlier Raised Questions Over Chandra’s Declared Financial Position
NEW DELHI (India CSR): 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 inflated net-worth certificates were used to obtain two loan facilities from LIC Housing Finance Ltd (LICHFL). The lender has alleged a wrongful loss of more than Rs. 1,322 crore, excluding further interest and charges.
The FIR was registered on August 31, 2026 by the CBI’s Banking Securities Fraud Branch, based on a written complaint filed by Neeta Menghani, General Manager, LIC Housing Finance. The FIR marks the beginning of a criminal investigation; the allegations have not yet been tested by a court, and no finding of guilt has been made.
Two Loans Totalled ₹980 Crore
According to the complaint cited in reports, LICHFL had sanctioned two facilities in 2018 with a combined principal amount of Rs. 980 crore.
The first was a Rs. 500 crore Home Entity Loan, reportedly granted to Vasant Sagar Properties Pvt Ltd and co-borrower Pan India Infra Projects Pvt Ltd. The facility was sanctioned for takeover and top-up purposes linked to business expansion. It was secured through a Letter of Continuing Guarantee allegedly executed by Subhash Chandra on March 28, 2018.
The second was a Rs. 480 crore rental-discounting facility under LICHFL’s rental securitisation scheme. It was granted to Digital Subscriber Management and Consultancy Services Pvt Ltd and co-borrower Spirit Infra Power and Multi Ventures Pvt Ltd. This facility was also allegedly backed by a continuing guarantee executed by Chandra on August 10, 2018.
| Loan facility | Borrowers/co-borrowers | Principal sanctioned | Guarantee date |
|---|---|---|---|
| Vasant Sagar facility | Vasant Sagar Properties; Pan India Infra Projects | ₹500 crore | March 28, 2018 |
| Digital Subscriber facility | Digital Subscriber Management; Spirit Infra Power and Multi Ventures | ₹480 crore | August 10, 2018 |
| Total | ₹980 crore |
Net-Worth Certificates Under Scrutiny
LICHFL has alleged that the facilities were sanctioned on the strength of net-worth certificates submitted by Chandra. For the Vasant Sagar loan, a certificate dated March 28, 2018, reportedly placed Chandra’s net worth at US$6,197.62 million, or about Rs. 59,113.21 crore, as on March 31, 2017. For the Digital Subscriber facility, another certificate dated July 6, 2018, reportedly reflected a net worth of Rs. 40,562 crore.
The complaint alleges that these declarations induced LIC Housing Finance to approve and disburse the loans. It further claims that, during later personal insolvency proceedings, Chandra disputed the net-worth figures contained in the certificates relied upon by the lender.
According to the complaint, he stated during the insolvency process that his net worth in 2024 was Rs. 31.79 crore and that, even in 2017–18, it had not exceeded Rs. 40,000 crore. The CBI will examine the authenticity, preparation and use of the documents, as well as the roles of the borrowers, company officials and any public servants.
Defaults and Claimed Loss
Both facilities subsequently went into default, according to the FIR. LICHFL has cited an outstanding amount of Rs. 570.50 crore in relation to the Vasant Sagar facility and Rs. 507.25 crore for the Digital Subscriber facility. The lender has pegged the alleged wrongful loss at more than Rs. 1,322 crore, including the effect of unpaid dues, interest and other charges. This amount is higher than the original Rs. 980 crore principal sanctioned because it reflects the lender’s total claimed exposure after the defaults.
The complaint also alleges misappropriation and misapplication of loan funds. It further alleges that assets of the personal guarantor were stripped or dealt with in a manner that could frustrate recovery proceedings. These are allegations under investigation and will require evidence before any legal conclusion can be drawn.
Companies and Individuals Named
Besides Subhash 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
- Unknown public servants and other persons
The inclusion of unknown public servants means the CBI will also examine whether any official role or procedural lapse contributed to the sanctioning or disbursement of the facilities.
Insolvency Proceedings Continue Separately
The CBI case is separate from the ongoing personal insolvency resolution process involving Chandra. In that process, creditor claims of about Rs. 22,006.57 crore were admitted, while a settlement proposal of Rs. 6.25 crore for creditors, along with Rs. 25 lakh towards process costs, had earlier come under challenge.
The present FIR focuses specifically on the LIC Housing Finance loans, the alleged use of inflated financial declarations, subsequent defaults, and the alleged impact on recovery. An FIR does not establish criminal liability; the CBI’s investigation may involve examining loan appraisal records, guarantee documents, fund flows, company records, net-worth certificates and the role of all persons named.
No response from Subhash Chandra or the named companies on the FIR was available in the reports reviewed at the time of publication.
Source: The Indian Express report on the CBI FIR; News9’s report detailing the two facilities.
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