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The Central Bureau of Investigation (CBI) has registered a case against Zee founder and Essel Group chairman Subhash Chandra and several others over an alleged financial fraud involving LIC Housing Finance Ltd (LICHFL). The lender has alleged that the transactions resulted in a wrongful loss of more than ₹1,322 crore.
The FIR, registered by the CBI’s Banking Securities Fraud Branch on August 31, 2026, follows a complaint filed by LICHFL General Manager Neeta Menghani. The investigation centres on two loan facilities sanctioned in 2018 and allegations that inflated net-worth certificates were used to secure the credit.
CBI Registers FIR Against Subhash Chandra and Others
According to the FIR and reports based on the complaint, Subhash Chandra has been named as the principal accused in the case. Several companies and their directors have also been named in connection with the alleged loan irregularities.
The CBI has registered allegations involving criminal conspiracy, cheating and criminal breach of trust. However, the allegations remain subject to investigation, and registration of an FIR does not establish guilt.
The case relates to loans extended by LIC Housing Finance to entities associated with the Essel Group. Investigators are examining the circumstances under which the loans were approved, the financial information submitted during the process and the subsequent defaults.
₹980 Crore in Loans Sanctioned in 2018
The investigation focuses on two credit facilities with a combined principal amount of approximately ₹980 crore.
According to reports, one facility of around ₹500 crore was sanctioned to Vasant Sagar Properties Pvt Ltd, while another facility of approximately ₹480 crore was extended to Digital Subscriber Management and Consultancy Services Pvt Ltd. Subhash Chandra allegedly provided personal guarantees in connection with the loans.
Both accounts subsequently became non-performing. LICHFL has alleged that the outstanding amounts, including interest and other dues, eventually resulted in a claimed loss of more than ₹1,322 crore.
Allegations Over Inflated Net-Worth Certificates
One of the central issues in the CBI investigation is the alleged discrepancy in Subhash Chandra’s declared net worth.
According to India Today, a net-worth certificate submitted during the 2018 loan process reportedly placed Chandra’s net worth at around ₹59,113 crore. The CBI is examining whether such financial representations were inflated and whether they played a role in the approval of the loan facilities.
The issue became particularly significant during subsequent insolvency proceedings, where Chandra reportedly declared a substantially lower net worth. India Today reported that his net worth was stated at approximately ₹31.79 crore in 2024, raising questions that are now part of the investigation.
LIC Housing Finance Claims Loss of More Than ₹1,322 Crore
LIC Housing Finance has alleged that the two loan accounts ultimately created a financial exposure exceeding ₹1,322 crore.
The figure includes the outstanding principal as well as interest and other dues, according to reports based on the lender’s complaint. The lender had also raised its claims during insolvency-related proceedings involving Subhash Chandra.
The development has placed renewed attention on the recovery of large corporate loans and the due-diligence processes followed by financial institutions when assessing the financial strength and guarantees of major borrowers.
CBI Probe to Examine Loan Approval and Defaults
The CBI investigation is expected to examine how the loans were sanctioned, the documents provided by the borrowers and guarantors, and how the funds were subsequently handled.
Investigators are also looking into the role of the companies and individuals associated with the transactions. Reports have indicated that the agency is examining whether there was any coordinated effort involving borrowers, company officials and other parties.
The investigation is separate from insolvency proceedings and could involve further questioning of the accused and other individuals connected with the loan transactions.
Subhash Chandra’s Insolvency Proceedings Add to the Case
The CBI case comes amid continuing legal and financial proceedings involving Subhash Chandra’s personal guarantees for loans taken by Essel Group-linked companies.
LIC Housing Finance had an admitted claim of around ₹1,322.39 crore in insolvency proceedings against Chandra, although the amount it was expected to receive under an approved repayment plan was substantially smaller.
The insolvency proceedings and the newly registered CBI case are separate matters, but developments in the former have contributed to increased scrutiny of Chandra’s financial declarations and liabilities.
Enforcement Directorate May Also Examine the Allegations
The Economic Times reported that the Enforcement Directorate (ED) is expected to initiate a money-laundering investigation in connection with the allegations. Such a probe, if formally launched, could examine the movement and use of funds linked to the alleged financial irregularities.
The CBI’s criminal investigation, however, remains at an early stage. Further action will depend on evidence collected during the probe.
What Happens Next?
The CBI is expected to examine financial records, loan documents, net-worth certificates, corporate records and other evidence related to the two credit facilities.
Investigators may also question the individuals and company officials named in the FIR as they seek to establish whether the alleged misrepresentations were deliberate and whether they directly contributed to the lender’s financial loss.
At this stage, the allegations against Subhash Chandra and the other accused have not been judicially established. The CBI investigation will determine whether the evidence supports the charges and whether further legal action is warranted.
The CBI’s FIR against Subhash Chandra and others over the alleged ₹1,322-crore LIC Housing Finance loss marks a significant development in a long-running dispute involving corporate loans, personal guarantees and insolvency proceedings.
The investigation is particularly focused on the alleged use of inflated net-worth certificates to obtain two loan facilities worth ₹980 crore in 2018. With both accounts subsequently turning into defaults, investigators are now examining the financial representations made at the time of loan approval and the events that followed.
As the CBI probe progresses, further details could emerge regarding the role of the borrowers, guarantors, company officials and other parties involved in the transactions.
