The Central Bureau of Investigation (CBI) has registered an FIR against Zee founder and Essel Group chairman Subhash Chandra and others over alleged irregularities in two LIC Housing Finance Ltd (LICHFL) loans that later defaulted, with the lender alleging a loss of more than ₹1,322 crore.
The case, registered on August 31 following a complaint from LICHFL, centres on allegations that inflated net-worth certificates were used to secure loans worth ₹980 crore in 2018, backed by Chandra’s personal guarantees. Chandra’s office has disputed the scale of the outstanding liability and said borrowers linked to his guarantees had assured him they would settle dues. The investigation is ongoing, and the allegations have not been proven in court.
What The CBI Is Alleging
According to the complaint incorporated into the FIR, LICHFL sanctioned a ₹500-crore facility to Vasant Sagar Properties and Pan India Infraprojects, and another ₹480-crore facility to Digital Subscriber Management and Consultancy Services and Spirit Infrapower and Multiventures. Both facilities were backed by personal guarantees allegedly furnished by Chandra.
LICHFL says the loans subsequently became non-performing, with outstanding amounts of around ₹570.5 crore and ₹507.25 crore respectively, while its total alleged loss, including interest and other charges, crossed ₹1,322 crore. The CBI is examining allegations including criminal conspiracy, cheating and criminal breach of trust.
A Wider Insolvency Battle
The CBI case comes amid a separate and contentious insolvency process involving Chandra’s personal guarantees for loans taken by Essel Group-linked companies.
LICHFL had an admitted claim of ₹1,322.39 crore in those proceedings, but an earlier NCLT-approved plan proposed paying it only around ₹38.09 lakh. The wider plan offered about ₹6.25 crore against admitted creditor claims of more than ₹22,000 crore. A five-member NCLT bench subsequently stayed the earlier order and ordered a rehearing, while creditors raised questions about Chandra’s asset disclosures and the proposed recovery. Chandra, meanwhile, has said borrowers connected to his guarantees had assured him that they would settle the remaining dues and has maintained that the claims against him need to be reconciled.
The Logical Indian’s Perspective
The case raises important questions about transparency, responsible lending and accountability when large loans are backed by personal guarantees and claims about wealth.
At the same time, allegations must remain allegations until investigators and courts establish the facts. The public deserves a transparent investigation that follows the money, examines the documents and identifies responsibility without prejudging anyone. For lenders and borrowers alike, stronger due diligence and clearer accountability can help protect public institutions and ordinary citizens from the consequences of large-scale financial failures. What do you think should be done to make corporate lending and recovery processes more transparent and accountable?
Also Read: CJP Seeks Accountability Over Satya Niketan Collapse, Calls For Delhi PG Safety Audit
