The Enforcement Directorate (ED) has registered a money-laundering case against media baron Subhash Chandra, the chairman of the Essel Group and founder of Zee, in connection with an alleged loan fraud that caused a loss of ₹1,322 crore to LIC Housing Finance Limited (LICHFL), officials said on Monday, November 2.
Source: PTI via The Hindu BusinessLine
The case has been filed under the Prevention of Money Laundering Act (PMLA), taking cognisance of an FIR registered by the Central Bureau of Investigation (CBI) on a complaint by LICHFL. The housing finance company has alleged that Chandra submitted inflated net-worth certificates to secure the approval and disbursal of two loans totalling ₹980 crore, and then defaulted on them. A comment from Chandra was awaited, PTI reported.
Source: PTI via The Hindu BusinessLine
According to the complaint recorded in the CBI FIR, one facility of ₹500 crore was extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as co-borrower, and was supported by a continuing guarantee executed by Chandra on March 28, 2018. The second facility, of ₹480 crore, went to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrower.
Source: PTI via The Hindu BusinessLine
The FIR states that during later proceedings under the Insolvency and Bankruptcy Code, Chandra denied having the net worth stated in the certificates submitted to LICHFL: he valued his net worth in 2024 at ₹31.79 crore and put his 2017-18 net worth at no more than ₹40,000 crore. The CBI is investigating allegations of criminal conspiracy, cheating, criminal breach of trust and misappropriation of loan funds. These are allegations recorded in the complaint and the FIR; the registration of a case does not establish guilt.
Source: The 420 / Urban Acres reports of the CBI FIR
Zee Entertainment Enterprises Limited said the ED case concerns Chandra in his personal capacity and certain promoter entities, and has no bearing on Zee or its operations. Separately, LICHFL was among the lenders that approached the National Company Law Appellate Tribunal opposing a recent NCLT repayment plan that would allow creditors to recover only about ₹6.5 crore from Chandra's personal estate against claims of roughly ₹22,006 crore, PTI reported. The ED will now examine the money trail linked to the two loans.