Why CBI filed an FIR against Subhash Chandra, 3 others
What's the story
The Central Bureau of Investigation (CBI) has filed an FIR against Essel Group Chairman Subhash Chandra and three others. The action comes over an alleged ₹1,322 crore fraud involving LIC Housing Finance. The complaint was registered today, just days after Chandra challenged the formation of a five-member bench by the National Company Law Tribunal (NCLT) to hear his personal insolvency case.
Tribunal ruling
NCLT stayed approval of repayment plan
Earlier this week, a special five-member bench of the NCLT had stayed the approval of a repayment plan.
The decision was taken as the previous opinion didn't have a clear majority.
The bench also barred Chandra from selling any assets.
This came after two members of the tribunal gave a split verdict last week.
Fraud details
Chandra allegedly submitted false net worth certificate
The CBI's FIR accuses Chandra, Pankaj Suroliya, Amish Pandya, and Rajeev Dholakia of cheating LIC Housing Finance Ltd (LICHFL).
The agency claims they conspired to obtain credit facilities based on disputed financial disclosures.
The complaint alleges that Chandra submitted a net worth certificate in 2018 declaring his net worth at ₹59,113 crore.
This certificate was allegedly used to secure loan facilities for Vasant Sagar Properties Pvt Ltd and other companies linked to him.
Fraud allegations
LICHFL has raised objections over Chandra's statements
LICHFL has raised objections over Chandra's statements in subsequent insolvency proceedings, particularly his denial of ever having a net worth of ₹50,000 crore.
The finance company has accused him of cheating, criminal breach of trust, and conspiracy.
The CBI is now investigating these allegations as part of its probe into the alleged fraud involving LIC Housing Finance.