ED registers money laundering case against Subhash Chandra
The case involves an alleged loan fraud that caused a loss of Rs 1,322 crore to LICHFL.
The Enforcement Directorate has registered a money laundering case against media baron Subhash Chandra in New Delhi, according to BusinessLine. The case was filed under the Prevention of Money Laundering Act (PMLA) after taking cognisance of a CBI FIR.
The action follows a complaint from Life Insurance Corporation Housing Finance Limited (LICHFL) regarding an alleged loan fraud. Officials said Chandra is alleged to have inflated his net worth to obtain loans from LICHFL and subsequently defaulted on them.
The LICHFL complaint alleged that Chandra submitted net-worth certificates to secure two loans totalling Rs 980 crore. The default on these loans reportedly caused a loss of Rs 1,322 crore, according to the August complaint.
One facility of Rs 500 crore was extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as co-borrower. A second facility of Rs 480 crore was extended to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrower.
The FIR alleges that Chandra submitted a certificate from DJM and Co on March 28, 2018, certifying a net worth of around Rs 59,000 crore. Another certificate from MPJ and Co on July 6, 2018, placed his net worth at Rs 40,562 crore.
The CBI complaint states that during Insolvency and Bankruptcy Code proceedings, Chandra denied having the net worth stated in those certificates. He reportedly pegged his 2024 net worth at Rs 31.79 crore.