New Delhi | 5 Sep 2026
The Central Bureau of Investigation has registered an FIR against Essel Group chairman Subhash Chandra, three company executives and several Essel-linked entities over an alleged ₹1,322 crore fraud involving two loan facilities granted by LIC Housing Finance Limited.
The case concerns loans totalling ₹980 crore sanctioned in 2018, allegedly on the basis of disputed net-worth certificates and continuing personal guarantees executed by Chandra. Both loan accounts subsequently defaulted, according to the lender’s complaint.
The allegations remain under investigation. Registration of an FIR does not establish guilt, and no court has adjudicated the claims against Chandra or the other accused.
CBI FIR names Subhash Chandra and Essel-linked entities
The CBI registered the FIR on 31 August following a complaint from LIC Housing Finance. Chandra has reportedly been listed as the first accused.
Other individuals named in the case include Pankaj Suroliya, Amish Pandya and Rajeev Dholakia. The FIR also names Vasant Sagar Properties Private Limited, Pan India Infraprojects Private Limited, Digital Subscriber Management and Consultancy Services Private Limited, and Spirit Infrapower and Multiventures Private Limited, along with unidentified persons.
The case invokes Section 120B of the Indian Penal Code, relating to criminal conspiracy, read with Sections 409 and 420, covering criminal breach of trust and cheating. Provisions of the Prevention of Corruption Act have also reportedly been applied.
Two LIC Housing Finance loans totalled ₹980 crore
The first facility involved a ₹500 crore loan sanctioned to Vasant Sagar Properties, with Pan India Infraprojects as co-borrower. It was described as a home-entity loan for takeover, top-up and business expansion.
Chandra executed a continuing personal guarantee for this facility on 28 March 2018.
The second facility was a ₹480 crore loan to Digital Subscriber Management and Consultancy Services, with Spirit Infrapower and Multiventures as co-borrower. It was sanctioned under a rental-discounting arrangement and backed by a continuing guarantee executed by Chandra on 10 August 2018.
LIC Housing Finance alleged that the accused acted in concert to induce the lender to approve and disburse the facilities. The complaint further alleged that loan funds were misappropriated and assets were dealt with in a manner that obstructed recovery.
Net-worth certificates under investigation
A central element of the complaint is the difference between financial figures submitted when the loans were sanctioned and statements recorded during Chandra’s subsequent personal insolvency proceedings.
According to the FIR, a certificate issued by DIM & Co on 28 March 2018 valued Chandra’s net worth at approximately ₹59,113.21 crore as of 31 March 2017. LIC Housing Finance alleged that this certificate was among the considerations used to approve the Vasant Sagar facility.
A second certificate, issued by chartered accountants MPJ & Co on 6 July 2018, placed Chandra’s net worth at ₹40,562 crore. The lender said this document was considered while sanctioning the Digital loan facility.
During personal insolvency proceedings in 2024, Chandra reportedly declared his net worth as ₹31.79 crore and disputed having the net worth stated in the earlier certificates. He also maintained that his net worth during 2017–18 had not exceeded ₹40,000 crore.
LIC Housing Finance alleged that the earlier certificates contained inflated figures and were used to secure approval and disbursal of the loans. The CBI will now examine the documents, financial transactions, use of funds and the respective roles of the named individuals and companies.
No immediate response to fresh CBI case
There was no immediate public response from Chandra or the other accused specifically addressing the newly registered FIR.
In earlier statements concerning his personal insolvency proceedings, Chandra maintained that he had not personally borrowed ₹22,000 crore. His office said the amount reported in those proceedings largely represented guarantees provided for loans raised by corporate entities.
Chandra’s office previously placed the personal-guarantee claims raised by creditors opposing his repayment plan at approximately ₹3,992 crore. That position concerned the insolvency proceedings and was not a response to the criminal allegations now being investigated by the CBI.
NCLT stays ₹6.25 crore repayment plan
The CBI case emerged days after a five-member special bench of the National Company Law Tribunal stayed an earlier order approving Chandra’s personal insolvency repayment plan.
The plan proposed distributing ₹6.25 crore from Chandra’s personal estate among creditors whose admitted claims totalled approximately ₹22,006.57 crore. Another ₹25 lakh was earmarked for insolvency-process costs.
LIC Housing Finance had an admitted claim of approximately ₹1,322.39 crore in the personal insolvency proceedings. Under the proposed plan, it was allocated about ₹38.09 lakh.
On 1 September, the special NCLT bench stayed the approval after finding that no clear majority had emerged from the earlier judicial opinions. It also restrained Chandra from directly or indirectly selling or transferring his assets while the matter is reconsidered.
LIC Housing Finance retains recovery rights
LIC Housing Finance has clarified that Chandra’s personal insolvency proceedings do not discharge or reduce the liabilities of the principal corporate borrowers.
The lender said it continues to hold security interests over the assets mortgaged for the two facilities and retains its enforcement and recovery rights under applicable law.
The criminal investigation and the personal insolvency proceedings are separate legal processes. The CBI will investigate whether criminal offences occurred, while the insolvency forum will determine the treatment of creditors’ claims and Chandra’s liability as a personal guarantor.
