Subhash Chandra–LIC Housing Finance loan fraud case
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Subhash Chandra–LIC Housing Finance loan fraud case is a major financial scandal in India involving the diversion of bank loans and money laundering by Subhash Chandra, the promoter of Essel Group[1].
Background
[edit]On 31 August 2026, LIC Housing Finance (LICHFL) filed a complaint with the Central Bureau of Investigation against Subhash Chandra and others[2]. The complaint alleges cheating, criminal conspiracy and criminal breach of trust in connection with two loans issued in 2018, together worth ₹980 crore (US$100 million). With interest, the alleged loss was later put at around ₹1,322 crore (US$140 million)[3]. The main allegation is that inflated net-worth certificates were used to secure the loans, including one that valued Chandra’s net worth in 2017 at about ₹59,113 crore (US$6.1 billion). The loans later went into default. During his personal insolvency proceedings, Chandra reported a much lower net worth[4].
Investigation
[edit]In a first information report filed on August 31, the CBI named Chandra as accused number 1, along with three companies, two individuals and other unknown persons. The case involves two loans given by LICHF to Vasant Sagar Properties Pvt Ltd and Digital Subscriber Management and Consultancy Services Pvt Ltd. Chandra had provided personal guarantees for both loans[5].
LICHF said the ₹500 crore (US$52 million) loan to Vasant Sagar Properties and the ₹480 crore (US$50 million) loan to Digital Subscriber Management were approved based on net-worth certificates submitted by Chandra in 2018. He claimed a net worth of ₹59,113 crore (US$6.1 billion) as of March 2017 for one loan and ₹40,562 crore (US$4.2 billion) for the other. Both loans later defaulted, with the alleged loss to LICHFL reaching ₹1,322 crore. During insolvency proceedings, however, Chandra said his net worth in 2024 was only ₹31.79 crore (US$3.3 million) and that it had never exceeded ₹40,000 crore even in 2017–18[5].
Also, LICHF has alleged that Chandra and the other accused acted together to deceive the company by using false or inflated net-worth documents to obtain the loans. It also alleged that the borrower companies misused the funds and warned that some of the accused could leave India. As of September 2026, CBI is investigating whether Chandra had misrepresented his financial position either when obtaining the loans or later during the insolvency proceedings[5].
References
[edit]- ↑ "CBI books Essel Group chairman Subhash Chandra in LIC Housing Finance ₹1,322-cr fraud case". BusinessLine. 2026-09-05. Retrieved 2026-09-09.
- ↑ Singh Manral, Mahendra (2026-09-05). "CBI books Subhash Chandra in Rs 1,322 crore LIC Housing Finance fraud case". The Indian Express. Retrieved 2026-09-09.
- ↑ "CBI books Subhash Chandra for allegedly defrauding LIC Housing Finance of Rs 1,322 crore". Scroll.in. 2026-09-06. Retrieved 2026-09-09.
- ↑ "CBI books Subhash Chandra, others over alleged ₹1,322-crore loss to LIC Housing Finance". The Hindu. 2026-09-05. ISSN 0971-751X. Retrieved 2026-09-09.
- 1 2 3 Chauhan, Neeraj (2026-09-05). "Zee Founder Subhash Chandra faces CBI heat over defaulted loans, ₹1,322 crore loss to LIC Housing". Hindustan Times. Retrieved 2026-09-09.
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