The Central Bureau of Investigation (CBI) has registered a criminal case against Essel Group Chairman Subhash Chandra and three others regarding an alleged financial fraud involving more than Rs 1,322 crore owed to LIC Housing Finance Ltd (LICHFL).

The case follows a complaint by LICHFL accusing Chandra, Pankaj Suroliya, Amish Pandya, and Rajeev Dholakia of conspiracy and cheating to secure credit facilities using disputed financial disclosures. LICHFL alleged that Chandra submitted a net worth certificate in 2018 declaring a net worth of Rs 59,113 crore, which was used to obtain loans for M/s Vasant Sagar Properties Pvt Ltd and other linked companies.

The specific loan facilities mentioned in the complaint include:

• A Rs 500 crore Home Entity Loan to Vasant Sagar Properties Pvt. Ltd. and Pan India Infra projects Pvt. Ltd., secured by a Letter of Continuing Guarantee dated 28 March 2018.
• A Rs 480 crore Rental Discounting facility to Digital Subscriber Management and Consultancy Services Pvt. Ltd. and Spirit Infra power and Multi Ventures Pvt. Ltd., secured by a Letter of Continuing Guarantee dated 10 August 2018.

LICHFL raised objections after Chandra reportedly denied in subsequent insolvency proceedings that he had ever possessed a net worth of Rs 50,000 crore. In 2024 insolvency proceedings, Chandra stated his net worth was Rs 31.79 crore and claimed he did not have a net worth exceeding Rs 40,000 crore in 2017-18.

In a statement on 27 August, Zee Group founder Subhash Chandra claimed he has not borrowed money from any lender and is only a personal guarantor. He stated that the total claim against him as a personal guarantor in insolvency proceedings is Rs 3,992 crore, rather than Rs 22,000 crore. Chandra noted that borrowing entities for whom he provided guarantees have repaid Rs 43,000 crore to date.