Subheadline: The FIR alleges that inflated net-worth certificates were used to secure two loans totalling ₹980 crore, which later defaulted.
New Delhi | September 6, 2026
The Central Bureau of Investigation has registered a first information report against Essel Group chairman Subhash Chandra over alleged misrepresentation of his net worth to obtain loans from LIC Housing Finance Ltd, according to a report by Aaj Tak Business citing PTI. The complaint alleges that the defaults caused losses of more than ₹1,322 crore to the lender.
The case follows a complaint filed by LIC Housing Finance. According to the details reported from the FIR, Chandra submitted net-worth certificates that were used to support the sanction and disbursement of two loans with a combined value of ₹980 crore. The loans were issued to Vasant Sagar Properties Pvt Ltd and Digital Subscriber Management and Consultancy Services Pvt Ltd.
The first facility was a ₹500-crore loan sanctioned to Vasant Sagar Properties for takeover, top-up and business expansion under a home-entity loan arrangement. Pan India Infra Projects India Pvt Ltd was listed as co-borrower. The FIR states that Chandra provided a continuing guarantee for the facility on March 28, 2018.
The second facility, valued at ₹480 crore, was sanctioned to Digital Subscriber Management and Consultancy Services under a rental securitisation scheme as a rental discounting facility. Spirit Infra Power and Multi Ventures Pvt Ltd was identified as co-borrower, while Chandra also provided a guarantee for this loan, according to the complaint.
LIC Housing Finance has alleged that a net-worth certificate issued by DIM & Company on March 28, 2018, placed Chandra’s net worth at approximately ₹59,000 crore. Another certificate issued by MPJ & Company on July 6, 2018, reportedly stated his net worth at ₹40,562 crore. The lender has alleged that these documents were relied upon while approving the two facilities.
The loans subsequently went into default. The FIR was reportedly registered after proceedings under the Insolvency and Bankruptcy Code, 2016, during which Chandra allegedly denied having the net worth stated in the certificates submitted to LIC Housing Finance. The complaint refers to a net worth of ₹31.79 crore in 2024 and a figure above ₹40,000 crore for 2017-18, as cited in the FIR.
The agency has alleged that Chandra acted together with the borrowing companies and their officials and directors to induce LIC Housing Finance to release funds. It has also alleged that false documents were created or used to inflate his declared net worth and obtain credit for the principal borrowers. These allegations have not been established in court.
The FIR marks the beginning of a criminal investigation. The reported material does not indicate that the CBI has completed its investigation or that a court has determined liability. Further action will depend on the agency’s investigation and subsequent proceedings in the case.
