CBI registered a case against Essel Group chairman Subhash Chandra and others over an alleged ₹1,322 crore fraud
LIC Housing Finance has alleged misrepresentation and inflated net-worth certificates
The case comes amid Chandra’s separate insolvency proceedings
The Central Bureau of Investigation (CBI) has registered a case against Essel Group chairman Subhash Chandra and others over an alleged ₹1,322 crore fraud involving LIC Housing Finance Ltd.
LIC Housing Finance has alleged that loan facilities were obtained through misrepresentation, including the submission of inflated net-worth certificates, as per a report by NDTV Profit.
1 August 2026
Get the latest issue of Outlook Business
The CBI has alleged offences including conspiracy, cheating, criminal breach of trust and criminal misconduct.
The CBI case relates to two loan facilities with a combined sanctioned amount of ₹980 crore. Chandra had personally guaranteed both facilities, according to the lender’s complaint.
One facility involved a ₹500 crore loan extended to Vasant Sagar Properties Pvt. Ltd., with Pan India Infra Projects Pvt. Ltd. as co-borrower.
The loan was approved as a Home Entity Loan for takeover and top-up purposes and was backed by a continuing guarantee executed by Chandra on March 28, 2018, as per the NDTV Profit report.
Advertisement
The Vasant Sagar loan subsequently turned non-performing, with the outstanding amount rising to ₹570.5 crore, according to the report. A second ₹480 crore Digital loan also turned NPA, with ₹507.25 crore outstanding.
LIC Housing Finance alleged that a net-worth certificate submitted for the ₹500 crore facility showed Chandra’s net worth at ₹59,113 crore. A separate certificate for the second facility put his net worth at ₹40,562 crore, NDTV Profit reported.
The lender later alleged that Chandra denied having the net worth claimed in the certificates.
The CBI has said the allegations disclose prima facie offences under the Indian Penal Code and the Prevention of Corruption Act, according to NDTV Profit.
Advertisement
Case Comes Amid Insolvency Dispute
The CBI case comes amid a separate legal dispute involving Chandra’s personal insolvency repayment plan.
The NCLT had on August 27 approved a repayment plan under which Chandra would pay around ₹6.25 crore against admitted claims of ₹22,006.57 crore.
After controversy, a five-member NCLT bench issued a stay on the order approving the plan.
The National Company Law Appellate Tribunal (NCLAT) has since postponed the hearing on lenders’ appeal against the repayment plan to October 7.
