New Delhi: The Central Bureau of Investigation has launched a criminal case against Essel Group founder Subhash Chandra and several affiliated commercial entities following allegations of a ₹1,322-crore fraud lodged by LIC Housing Finance Limited. The formal complaint, registered on August 31, invokes provisions concerning criminal conspiracy, cheating, criminal breach of trust, and public misconduct under the Indian Penal Code and the Prevention of Corruption Act, marking a major escalation in the financial titan’s regulatory challenges.
Central to the lender’s complaint is a vast divergence in Chandra’s declared personal wealth used to secure substantial credit facilities. LIC Housing Finance stated that two major loan packages—valued at ₹500 crore and ₹480 crore—were approved based on personal guarantees backed by official net-worth certificates. These documents initially valued Chandra’s personal holdings at ₹59,113 crore and ₹40,562 crore, establishing the financial credibility necessary to sanction and disburse the capital.
The housing finance corporation alleged that Chandra dramatically changed his stance during subsequent personal insolvency proceedings, disowning the prior certificates and claiming his net valuation in 2024 stood at merely ₹31.79 crore. The financial institution contends that fabricated and inflated wealth statements were submitted deliberately to secure funding, while borrowed capital was subsequently diverted and collateral stripped to frustrate debt recovery mechanisms.
The economic ramifications remain substantial, with LIC Housing Finance holding an admitted exposure of ₹1,322.39 crore, contrasted against an insolvency resolution proposal offering the lender roughly ₹38.09 lakh. Alongside consortia partners Canara Bank and Union Bank, the lender has initiated legal challenges against the insolvency determinations while maintaining that underlying mortgage protections and original corporate borrower obligations remain legally binding.
