ED files money laundering case against Subhash Chandra
What's the story
The Enforcement Directorate (ED) has filed a money laundering case against media mogul Subhash Chandra. The action is part of an alleged loan fraud that resulted in a loss of ₹1,322 crore to Life Insurance Corporation Housing Finance Limited (LICHFL). The case was registered under the Prevention of Money Laundering Act (PMLA), based on a Central Bureau of Investigation (CBI) FIR.
Fraud details
Chandra allegedly inflated his net worth to secure loans
Chandra is accused of inflating his net worth to secure loans from LICHFL and then defaulting on them.
The CBI had earlier registered a case on LICHFL's complaint, which led to the ED's money laundering case.
In its complaint, LICHFL alleged that Chandra submitted net-worth certificates to get approval and disbursement of two loans totaling ₹980 crore.
Impact assessment
Loans that led to the default
The default on these loans has caused a loss of ₹1,322 crore to LICHFL.
The complaint pertains to a ₹500 crore facility given to Vasant Sagar Properties Private Limited with Pan India Infra Projects Private Limited as co-borrower and a ₹480 crore facility given to Digital Subscriber Management and Consultancy Services Private Limited with Spirit Infra Power and Multi Ventures Private Limited as co-borrower.
Certification concerns
Details of the loans
The complaint highlights that the ₹500 crore Vasant Sagar facility was approved as a home-entity loan for takeover, top-up, and business expansion.
It was secured by a continuing guarantee dated March 28, 2018, executed by Chandra himself.
The ₹480 crore digital facility was approved as a rental-discounting facility under a rental-securitisation scheme through another loan account and also secured by a continuing guarantee executed by Chandra.
Net worth discrepancies
Chandra's net worth during insolvency proceedings
According to LICHFL, the net-worth certification submitted by Chandra was issued by DJM and Co on March 28, 2018. It certified his net worth at around ₹59,000 crore.
However, during insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), Chandra denied having the net worth stated in these certificates.
He pegged his net worth at ₹31.79 crore in 2024 and no more than ₹40,000 crore in 2017-18.