ED Registers Money Laundering Case Against Subhash Chandra
Agency acts on CBI FIR alleging inflated net-worth certificates were used to secure Rs 980 crore in loans from LIC Housing Finance
- ED registers a PMLA case against Subhash Chandra based on a CBI FIR.
- LICHFL alleges a Rs 1,322 crore loss linked to two loans worth Rs 980 crore.
- Investigators are examining net-worth certificates valuing Chandra’s wealth at up to Rs 59,000 crore.
- Zee Entertainment says the case concerns Chandra personally and does not affect the company.
GG News Bureau
New Delhi, 2nd Nov: The Subhash Chandra money laundering case has taken a new turn, with the Enforcement Directorate (ED) registering a case against the media baron over an alleged loan fraud that reportedly caused a loss of Rs 1,322 crore to LIC Housing Finance Limited (LICHFL).
Officials said the case has been registered under the Prevention of Money Laundering Act (PMLA), based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).
According to the allegations, Chandra inflated his net worth to obtain loans from LICHFL, which were subsequently defaulted on. The lender’s complaint alleges that two loans worth a combined Rs 980 crore were secured using net-worth certificates that substantially overstated his financial position.
Responding to the development, a spokesperson for Zee Entertainment Enterprises Ltd said the ED proceedings concern Chandra in his personal capacity and have no bearing on the company’s operations.
“The matters pertain to Dr Subhash Chandra and the promoter entities and have no bearing on ‘Z’ or its operations in any manner,” the spokesperson said.
Two loans under investigation
The complaint filed by LICHFL concerns two credit facilities: a Rs 500 crore loan to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as co-borrower, and a Rs 480 crore facility to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrower.
The Rs 500 crore facility was sanctioned for takeover, top-up and business expansion. It was secured by a continuing guarantee executed by Chandra on March 28, 2018.
The Rs 480 crore facility was sanctioned under a rental-discounting arrangement through a rental-securitisation scheme. It was also backed by a continuing guarantee executed by Chandra, according to the FIR.
Net-worth certificates under scrutiny
LICHFL alleged that a certificate issued by DJM and Co on March 28, 2018, placed Chandra’s net worth at around Rs 59,000 crore. Another certificate, issued by MPJ and Co on July 6, 2018, valued his net worth at Rs 40,562 crore.
The lender said the certificates were used to support the loan approvals and disbursals. Both facilities subsequently went into default, resulting in the alleged loss of Rs 1,322 crore.
The CBI complaint further states that during insolvency proceedings under the Insolvency and Bankruptcy Code, Chandra disputed the net-worth figures reflected in the certificates. It says he pegged his net worth at Rs 31.79 crore in 2024 and at no more than Rs 40,000 crore during 2017–18.
The FIR alleges that Chandra, in collusion with the borrower companies and their officials, used false documents to induce LICHFL to release funds. These are allegations that will be examined through the investigation.
Separate insolvency proceedings
LICHFL was also among the lenders that approached the National Company Law Appellate Tribunal (NCLAT), challenging an NCLT-approved repayment plan under which creditors would reportedly recover around Rs 6.5 crore from Chandra’s personal estate against claims of approximately Rs 22,006 crore.
The ED’s investigation will now examine the alleged proceeds of crime and the transactions linked to the loan facilities.
