CBI Books Zee Founder Subhash Chandra in Alleged ₹1,322 Crore Fraud Case

The Central Bureau of Investigation has named Zee founder Subhash Chandra as accused No. 1 in an alleged ₹1,322 crore fraud case involving LIC Housing Finance Limited. The agency filed its first information report on August 31, charging Chandra and others with criminal conspiracy, cheating and criminal breach of trust.

The allegations concern loans extended to companies for business expansion and rental securitisation. Chandra provided continuing guarantees for the borrowings. According to a complaint from LIC Housing Finance included in the FIR, Vasant Sagar Properties and co-borrower Pan India Infra Projects received a ₹500 crore facility. Digital Subscriber Management and Consultancy Services and co-borrower Spirit Infrapower and Multiventures later received ₹480 crore under a rental discounting facility linked to the rental securitisation scheme.

LIC Housing Finance said lending decisions relied on net-worth certificates submitted by Chandra in 2018. For the Vasant Sagar loan, he certified a net worth of ₹59,113 crore as of March 31, 2017. In the Digital loan matter, a certificate dated July 6, 2018, put his net worth at ₹40,562 crore. Both loan accounts subsequently defaulted.

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He categorically denied having the net worth as stated in the certificates.

The complaint says that during later proceedings under the Insolvency and Bankruptcy Code concerning Chandra’s personal insolvency resolution, he “categorically denied having the net worth as stated in the certificates.” The lender said he had submitted those certificates to secure approval and disbursal of the loans, and that his net worth had not exceeded ₹40,000 crore in 2017-18.

LIC Housing Finance urged the CBI to investigate, saying, “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 also said the accused had publicly disclosed an intention to leave India and could do so unless authorities registered an FIR and began an early investigation to trace loan proceeds and assets. Other named accused include the companies involved, several directors and unknown individuals. The National Company Law Tribunal approved Chandra’s repayment plan last month.

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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.