The Central Bureau of Investigation (CBI) has registered a case against Subhash Chandra and others over an alleged fraud of approximately Rs 1,322 crore involving LIC Housing Finance Ltd (LICHFL).
The case follows a complaint submitted to the CBI Head Office concerning two loan facilities sanctioned to companies linked to Chandra. The complaint details a Rs 500 crore loan to Vasant Sagar Properties Pvt. Ltd. and Pan India Infra Projects Pvt. Ltd., and another Rs 480 crore facility to Digital Subscriber Management and Consultancy Services Pvt. Ltd. and Spirit Infra Power and Multi Ventures Pvt. Ltd.
Both facilities were backed by personal guarantees from Chandra, according to the complaint.
Loans linked to net worth certificates
The complaint alleges that the Vasant Sagar loan was sanctioned partly on the basis of a net worth certificate submitted by Chandra. The certificate, issued by DIM & Co., put his net worth at US$ 6,197.62 million, or approximately Rs 59,113.21 crore, as of March 31, 2017.
The second loan was similarly supported by another net worth certificate. The complaint states that MPJ & Co., Chartered Accountants, certified Chandra's net worth at Rs 40,562 crore in July 2018.
The complaint states, "The Vasant Sagar Loan Facility was granted inter alia on the basis of the Net Worth Certificate submitted by Subhash Chandra, issued by 28th March 2018 issued by DIM & Co, certifying that his networth was US$ 6,197.62 Million (approximately Rs. 59,113.21 Crores), as on 31st March 2017 Similarly. the Digital Loan Facility was granted inter alia on the basis of the Net Worth Certificate submitted by Subhash Chandra, issued by MPJ & Co.. Chartered Accountants on 06.07.2018, certifying that his networth was Rs. 40,562 Crores,"
Chandra later disputed declared net worth
According to the complaint, both loan facilities subsequently went into default. During proceedings under the Insolvency & Bankruptcy Code, 2016 concerning Chandra's personal insolvency resolution, he allegedly denied having the net worth mentioned in the certificates submitted to LICHFL.
"In the course of the proceedings. he has stated that his net worth in 2024 is Rs. 31.79 crore and stated that, even in 2017-18. he did not have the net worth of more than Rs. 40.000 Crores," the complaint noted.
The CBI case centres on the alleged discrepancies in the financial declarations used in connection with the loan facilities and the subsequent defaults.