CBI FIR against Subhash Chandra in alleged Rs 1,322cr LIC Housing Finance fraud
The CBI has registered an FIR against Essel Group Chairman Subhash Chandra following allegations by LIC Housing Finance Ltd of a Rs 1,322 crore fraud. The complaint claims Chandra secured loans by submitting inflated net worth certificates in 2018, only to later claim a significantly lower net worth during insolvency proceedings.
Why it matters
This case highlights significant corporate governance and credit risk issues within India's financial sector, involving a prominent business figure and a major state-backed housing finance institution.
NEW DELHI: CBI has filed an FIR against Essel Group Chairman Subhash Chandra and some other individuals for allegedly defrauding LICHFL (LIC Housing Finance Ltd) of Rs 1,322 crore between 2018 and 2026. LICHFL alleged that Chandra had submitted a 'net worth certificate' of Rs 59,113 crore in 2018 while availing credit facilities but in 2024 stated that his net worth was just Rs 31.7 crore. The FIR was registered on a complaint filed by LICHFL on Aug 31.According to the FIR, LICHFL had sanctioned two loan facilities totalling Rs 980 crore to four companies.
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