CBI booked Zee founder Subhash Chandra in alleged ₹1,322-crore LICHFL fraud.
Investigators are examining two defaulted loan accounts carrying Chandra’s continuing guarantees.
LICHFL alleged Chandra submitted conflicting claims about his historical net worth.
The Central Bureau of Investigation (CBI) has filed a case against Zee founder Subhash Chandra, other private individuals and companies in connection with an alleged fraud worth ₹1,322 crore involving LIC Housing Finance Limited (LICHFL).
Chandra has been named as accused number 1 in the first information report (FIR) filed by the CBI on August 31 under charges of criminal conspiracy, cheating and criminal breach of trust.
The allegations pertain to loan facilities extended by LICHFL to different companies for business expansion and rental securitisation, with Chandra providing continuing guarantees for the borrowings.
According to the LICHFL complaint to the CBI, which is part of the FIR, a loan facility of ₹500 crore was given to Vasant Sagar Properties Pvt Ltd and Pan India Infra Projects Pvt. Ltd. (co-borrower).
Subsequently, a loan facility of ₹480 crore was given to Digital Subscriber Management and Consultancy Services Pvt. Ltd. and Spirit Infrapower and Multiventures Pvt. Ltd. (co-borrower) as a Rental Discounting facility under the Scheme of Rental Securitisation.
In both instances, lending decisions were taken based on net worth certificates submitted by Chandra in 2018. Chandra had submitted his net worth certificate for the Vasant Sagar loan, certifying that his net worth was ₹59,113 crore as of March 31, 2017. In the Digital Loan Facility matter, he had given a net worth certificate on July 6, 2018, stating that his net worth was ₹40,562 crore.
Since then, both loan accounts have defaulted.
The complaint further says that in the course of subsequent proceedings under the Insolvency and Bankruptcy Code for the personal insolvency resolution of Subhash Chandra, “he categorically denied having the net worth as stated in the certificates”, which he submitted to LICHFL to cause approval and disbursal of the loans. Even in 2017-18, he did not have a net worth of more than ₹40,000 crore.
While seeking a probe into the matter, LICHFL told the CBI, “it is quite apparent that Subhash Chandra and the other accused persons have connived among themselves with common criminal and dishonest intention to defraud the complainant”.
It further says that the accused persons have “publicly disclosed their intention to leave India and are likely to do so, unless a FIR is registered and investigation is undertaken at the earliest to trace the proceeds of the loan and assets of the accused persons”.
Apart from Chandra, others who have been named in the FIR include Vasant Sagar Properties, its director Pankaj Suroliya, Pan India Infrastructure, Digital Subscriber Management and its director Amish Pandya, another company, Spirit Infrapower and Multiventures, and its director Rajeev Dholakia, as well as unknown others.
Last month, the National Company Law Tribunal (NCLT) approved Chandra’s repayment plan, under which he would pay ₹6.5 crore. Of this, ₹6.25 crore would go towards creditors, while ₹25 lakh would be used to meet insolvency process costs.
The original claim in the case was about ₹22,006.57 crore. However, a five-member bench later stayed this order.
