CBI books Subhash Chandra, others in Rs 1,322 crore LIC Housing fraud case

The case stems from a complaint by LICHFL, which has alleged that net-worth certificates submitted when the loans were sanctioned showed Chandra to be considerably wealthier than what he later disclosed during insolvency proceedings.

According to PTI, one certificate submitted in March 2018 put Chandra’s net worth at around Rs 59,000 crore, while another issued in July that year valued it at Rs 40,562 crore. The lender has presented that these certificates were among the documents relied upon while sanctioning the loans.

What were the loans?

The first was a Rs 500 crore loan to Vasant Sagar Properties Pvt Ltd, with Pan India Infraprojects Pvt Ltd as a co-borrower, according to the FIR cited by PTI.

The second loan, worth Rs 480 crore, was sanctioned to Digital Subscriber Management and Consultancy Services Pvt Ltd, with Spirit Infrapower and Multiventures Pvt Ltd as a co-borrower.

Chandra had given personal guarantees for both loans, according to the lender’s complaint. In simple terms, this meant LICHFL could also seek recovery from the guarantor in this case Chandra, if the borrowing companies failed to repay, subject to the terms of the guarantees and applicable law.

Both loan accounts subsequently went into default, according to the lender.

Where did the net-worth dispute arise?

Questions over the certificates surfaced later during insolvency proceedings involving Chandra as a personal guarantor.

According to the FIR cited by PTI, Chandra said during those proceedings that his net worth in 2017-18 was no more than Rs 40,000 crore. His disclosed assets in 2024 were valued at about Rs 31.79 crore.

The numbers presented during the insolvency proceeding offered a sharp mismatch from those presented by the lender in its allegation.

LICHFL has alleged that false or inflated net-worth documents were used to persuade it to extend the two facilities. The complaint also alleges collusion between Chandra, the borrower companies and their officials.

These allegations are now being investigated by the CBI and have not been established by a court.

Why is LICHFL’s claim Rs 1,322 crore?

This is separate from the amount originally lent. The two facilities sanctioned by LICHFL totalled Rs 980 crore. In Chandra’s personal insolvency proceedings, however, LICHFL had an admitted claim of Rs 1,322.39 crore, according to the lender’s disclosures reported last month.

Such claims can be higher than the original loan amount because they can include interest and other amounts due under the loan agreements. LICHFL has also said that it continues to retain its rights over the assets securing the two facilities.

Insolvency case being heard separately

The filing of the FIR comes at a time Chandra is facing separate personal insolvency proceedings over guarantees given for loans taken by Essel Group-linked companies.

An NCLT order approving his repayment plan was stayed on September 1 by a five-member bench, which directed that the matter be heard afresh and restrained Chandra from transferring his assets in the meantime.

Those proceedings are separate from the CBI investigation.

There was no immediate response from Chandra to the registration of the FIR, PTI reported.