Subhash Chandra Faces Money Laundering Charges Over Alleged ₹1,322 Crore Fraud

Enforcement Directorate Takes Action Against Subhash Chandra

New Delhi: The Enforcement Directorate has initiated a money laundering investigation against media mogul Subhash Chandra, linked to an alleged loan fraud that resulted in a loss of ₹1,322 crore for Life Insurance Corporation Housing Finance Limited (LICHFL), as reported by officials on Monday.

Chandra is accused of exaggerating his financial standing to secure loans from LICHFL, which he subsequently failed to repay. The case has been registered under the Prevention of Money Laundering Act (PMLA), following a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).

In response to these allegations, a representative from Zee Entertainment Enterprises Ltd clarified that the ED's case pertains to Chandra personally and does not impact the company or its operations.

The spokesperson emphasized, "The issues are related to Dr. Subhash Chandra and the associated entities, and do not affect 'Z' or its business in any way."

Previously, the CBI had opened a case based on a complaint from LICHFL, which led to the ED's money laundering inquiry.

LICHFL's complaint, included in the CBI FIR, claims that Chandra provided inflated net-worth certificates to obtain approval for two loans totaling ₹980 crore. The default on these loans has reportedly led to a loss of ₹1,322 crore.

LICHFL was among the creditors that contested a recent repayment plan approved by the National Company Law Appellate Tribunal (NCLAT), which allowed creditors to recover only about ₹6.5 crore from Chandra's personal assets against claims exceeding ₹22,006 crore.

The complaint details a ₹500 crore loan granted to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as a co-borrower, and a ₹480 crore loan to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrowers.

The ₹500 crore loan was approved as a home-entity loan for takeover, top-up, and business expansion, secured by a guarantee from Chandra dated March 28, 2018.

The ₹480 crore loan was sanctioned under a rental-discounting scheme and was also secured by a guarantee from Chandra, according to the FIR.

LICHFL claims that the net-worth certification provided by Chandra, issued by DJM and Co on March 28, 2018, stated his net worth at approximately ₹59,000 crore.

Additionally, a net-worth certificate from chartered accountants MPJ and Co dated July 6, 2018, indicated his net worth at ₹40,562 crore, which was used to sanction the digital facility.

Both loans eventually went into default, as per LICHFL's statements.

The CBI's complaint notes that during proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra disputed the net worth claimed in the certificates submitted to LICHFL.

During these proceedings, he assessed his net worth at ₹31.79 crore in 2024 and no more than ₹40,000 crore in 2017-18, according to the FIR.

The FIR alleges that Subhash Chandra, in collusion with the borrowers, defrauded LICHFL into granting loans to entities that misappropriated the funds.

It accuses the former Rajya Sabha MP of fabricating documents to present inflated net worth figures to deceive LICHFL into disbursing funds.