India
ED Opens Money Laundering Probe into Subhash Chandra Over LIC Housing Finance Loans
The Enforcement Directorate (ED) has begun a money‑laundering investigation under the Prevention of Money Laundering Act (PMLA) against Essel Group chairperson and Zee founder Subhash Chandra. The probe relates to loans from LIC Housing Finance Limited (LICHFL) to two Essel Group companies, which allegedly caused the public sector lender a loss of ₹1,322 crore, according to sources familiar with the matter.
Chandra provided personal guarantees for the borrowings. The ED’s investigation was triggered by a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) on August 31. An ED officer said an Enforcement Case Information Report (ECIR) has been registered, but did not disclose further details. Zee Entertainment Enterprises Limited confirmed that the ECIR is addressed to Chandra in his personal capacity and that it does not affect the company’s operations.
The CBI FIR names Chandra as accused number one under sections relating to criminal conspiracy, cheating and criminal breach of trust. It also names three companies, two individuals and other unnamed parties. Immigration authorities have issued a look‑out circular against Chandra at all airports, ports and land entry/exit points to prevent him from leaving the country, at the CBI’s request.
Loans to Group Companies
Vasant Sagar, one of the two companies, received a ₹500 crore loan. Pan India Infraprojects Private Limited was the co‑borrower for the home‑entity loan used for takeover and business expansion. Digital Subscriber Management and Consultancy Services Pvt Limited received a ₹480 crore loan, with Sprit Infrapower and Multiventures Pvt Ltd as co‑borrowers under a rental discounting facility.
Net Worth Certificates and Alleged Loss
The loans were approved based on net worth certificates submitted by Chandra in 2018 as his personal guarantee. For the ₹500 crore loan, the certificate stated his net worth as of March 31, 2017, was ₹59,113 crore. For the ₹480 crore loan, the certificate dated July 6, 2018, claimed a net worth of ₹40,562 crore. The FIR alleges that both loan accounts defaulted, resulting in a ₹1,322 crore loss to LICHFL.
Chandra has denied having the net worth claimed in the certificates. During subsequent personal insolvency proceedings, he stated his 2024 net worth was ₹31.79 crore and that he did not possess more than ₹40,000 crore in 2017‑18. LICHFL accuses him of creating false documents to inflate his net worth and deceive the lender.
Insolvency Proceedings and ED Directive
LICHFL is a party in the National Company Law Tribunal (NCLT) personal insolvency proceedings. The tribunal last month approved Chandra’s repayment plan of ₹6.25 crore out of admitted claims of ₹22,006 crore, but a five‑member bench later stayed the order. The ED has directed its teams to investigate frauds in insolvency cases involving large haircuts that allow promoters to reacquire assets.
The ED’s action follows controversy over the NCLT order approving Chandra’s repayment plan.
The article was reported by Neeraj Chauhan, an investigative journalist with extensive experience covering national security, corruption and financial crime in India.
Frequently asked questions
What triggered the Enforcement Directorate's investigation into Subhash Chandra?
The investigation was triggered by a First Information Report (FIR) filed by the Central Bureau of Investigation on August 31.
What loans were involved in the probe and what losses did LIC Housing Finance claim?
The probe involves a ₹500 crore loan to Vasant Sagar and a ₹480 crore loan to Digital Subscriber Management and Consultancy Services Pvt Limited, which together defaulted and caused LIC Housing Finance a loss of ₹1,322 crore.
What net worth figures were claimed in the certificates submitted by Subhash Chandra?
The certificates claimed a net worth of ₹59,113 crore as of March 31, 2017 for the ₹500 crore loan, and ₹40,562 crore as of July 6, 2018 for the ₹480 crore loan.