CBI Targets Zee Founder Subhash Chandra Over Defaulted Loans, ₹1,322 Crore LIC Housing Loss

The Central Bureau of Investigation (CBI) has registered an FIR against Essel Group chairman and Zee founder Subhash Chandra for allegedly misleading LIC Housing Finance Limited (LICHFL) about his net worth while providing personal guarantees for two loans that later defaulted, causing the public sector lender a loss of ₹1,322 crore.

Following a request from the CBI, immigration authorities have issued a look-out circular against Chandra at airports, ports and land entry and exit points across the country to prevent him from leaving India.

The Enforcement Directorate (ED) is also examining the matter, although a formal investigation has not yet been initiated, according to an officer familiar with the case.

Chandra did not respond to calls or text messages from Hindustan Times. An email sent to Zee Group’s corporate communications team also went unanswered.

CBI names Chandra, companies and associates

The FIR, registered on August 31, names Chandra as accused number one and invokes provisions relating to criminal conspiracy, cheating and criminal breach of trust. Three companies, two individuals and several unidentified persons have also been named as accused.

The case concerns loans sanctioned by LICHFL to two companies — Vasant Sagar Properties Pvt Ltd and Digital Subscriber Management and Consultancy Services Pvt Ltd — for business expansion and rental securitisation. Chandra had furnished personal guarantees for the loans.

Two loans under investigation

According to LICHFL’s complaint, which forms part of the FIR, Vasant Sagar Properties was sanctioned a ₹500 crore loan facility, with Pan India Infra Projects Pvt Ltd as co-borrower. The loan was intended for takeover and top-up requirements linked to business expansion.

A separate ₹480 crore loan was sanctioned to Digital Subscriber Management and Consultancy Services, with Spirit Infrapower and Multiventures Pvt Ltd as co-borrower, under a rental discounting facility.

Rental discounting, also known as lease rental discounting, is a financing arrangement in which future rental income is used as security for a loan.

Net worth certificates at centre of allegations

LICHFL’s complaint states that both lending decisions were based on net worth certificates submitted by Chandra in 2018 as part of his personal guarantees.

For the ₹500 crore loan, Chandra submitted a certificate stating that his net worth as of March 31, 2017, stood at ₹59,113 crore. For the ₹480 crore loan, a certificate dated July 6, 2018, put his net worth at ₹40,562 crore.

Both loan accounts subsequently turned into non-performing assets. According to the FIR, the lender’s current loss stands at ₹1,322 crore.

Chandra later disputed the declared net worth

The CBI FIR alleges that during subsequent personal insolvency proceedings, Chandra “categorically denied having the net worth as stated in the certificates” submitted to LICHFL for approval and disbursal of the loans.

The agency said Chandra stated during the insolvency process that his net worth in 2024 was ₹31.79 crore and that even in 2017-18, it was not more than ₹40,000 crore.

LICHFL, in its complaint, alleged that Chandra and the other accused had “connived among themselves with common criminal and dishonest intention to defraud the complainant”.

The FIR also names Vasant Sagar Properties and its director Pankaj Suroliya; Pan India Infrastructure; Digital Subscriber Management and its director Amish Pandya; Spirit Infrapower and its director Rajeev Dholakia; as well as unidentified others.

LICHFL alleges collusion and diversion of funds

LICHFL has alleged that Chandra acted in collusion with the borrowing companies and their officers and directors to deceive the lender into advancing the loans, which were subsequently misappropriated.

The lender further accused Chandra of creating “false documents to denote inflated and false net worth” to induce LICHFL to release funds to the principal borrowers.

LICHFL also told the CBI that the accused had publicly indicated an intention to leave India and could do so unless an FIR was registered and an investigation launched promptly to trace the loan proceeds and assets of the accused.

An officer familiar with the investigation said the agency was examining why Chandra allegedly misrepresented his financial position to obtain the loans.

“We are investigating why he misled the creditor to avail the loans. Either he was lying then, or is lying now,” the officer said.

NCLT repayment plan stayed

LICHFL is also a party to personal insolvency proceedings involving Chandra before the National Company Law Tribunal (NCLT).

Last month, the tribunal approved a repayment plan under which Chandra was to pay ₹6.25 crore against admitted claims of ₹22,006 crore. A five-member NCLT bench subsequently stayed the order.

In a video statement last week responding to the repayment plan, Chandra said he had never personally borrowed money from the lenders.

“There is no personal borrowing by Dr. Subhash Chandra from any of the creditors named in the order or from any other creditor/lender. He only signed personal guarantees,” he said.

In the same statement, Chandra said he planned to work with a friend in Switzerland.

“Right now, I have a plan to work with my friend in Switzerland who does investment work. I will give you details of this in one or two weeks,” he said.