ED books Subhash Chandra in money laundering case

The Enforcement Directorate (ED) has registered a money laundering case against media entrepreneur Subash Chandra over an alleged loan fraud that LIC Housing Finance Limited LICHFL has reported. The case filed under the Prevention of Money Laundering Act , follows a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI).

According to the allegations, Chandra inflated his net worth through financial certificates to secure loans worth Rs 980 crore from LICHFL. The lender has claimed that the loans were subsequently defaulted on, resulting in a substantial financial loss.

The complaint concerns two separate loan facilities. The first, worth Rs 500 crore, was extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as the co-borrower. The second facility of Rs 480 crore was sanctioned to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as the co-borrower.

LICHFL alleged that the loans were supported by net-worth certificates issued by chartered accountancy firms. One certificate, dated March 28, 2018, reportedly placed Chandra’s net worth at approximately Rs 59,000 crore, while another, issued on July 6, 2018, valued it at Rs 40,562 crore.

However, the CBI FIR alleges that during subsequent insolvency proceedings, Chandra disputed the financial figures mentioned in the certificates. According to the complaint, he declared his net worth at Rs 31.79 crore in 2024.
The allegations further claim that Chandra, along with the borrower companies and their official ,misrepresented his finances to obtain the loans. The investigating agencies are examining the alleged role of the individuals and entities involved. Meanwhile, LICHFL has also approached the National Company Law Appellate Tribunal (NCLAT), challenging a repayment plan approved by the National Company Law Tribunal (NCLT). The plan reportedly allows creditors to recover around Rs 6.5 crore against claims of approximately Rs 22,006 crore from Chandra’s personal estate.

Responding to the development, a Zee Entertainment Enterprises Ltd spokesperson clarified that the ED proceedings concern Chandra in his personal capacity and have no connection with the company’s operations.

The investigation is ongoing, and the allegations are yet to be established before a court of law.