- ED opened a money laundering case after LIC Housing Finance alleged ₹1,322 crore in losses.
- Two LICHFL loans worth ₹980 crore defaulted, triggering separate ED and CBI inquiries.
- LICHFL disputed a ₹6.5 crore repayment plan against creditor claims totaling ₹22,006 crore.
The Indian Enforcement Directorate opened a money laundering case against Essel Group chairman Subhash Chandra after LIC Housing Finance reported losses of ₹1,322 crore. Registered under the Prevention of Money Laundering Act on November 2, the inquiry followed a CBI case based on the lender’s complaint. Alleged fraud, questionable certificates, and diverted funds remain under investigation.
ED Probes ₹1,322 Crore LIC Housing Finance Loss After Loan Defaults
The India Enforcement Directorate case stems from two LIC Housing Finance facilities totaling ₹980 crore, according to PTI. In 2018, the lender advanced ₹500 crore to Vasant Sagar Properties, with Pan India Infraprojects named as co-borrower.
The funds financed a takeover and expansion, while Subhash Chandra guaranteed it. A second LIC Housing loan of ₹480 crore went to Digital Subscriber Management and Consultancy Services, alongside co-borrower Spirit Infrapower and Multiventures.
Chandra also guaranteed this facility. Both loans defaulted. However, the lender reported a ₹1,322 crore loss, without an explanation reconciling that amount against the principal.
₹59,000 Crore Net-Worth Certificate Draws Investigators’ Scrutiny
The India Enforcement Directorate is examining potential laundering, while the CBI investigates alleged deception behind LIC Housing lending decisions. According to the complaint, DJM and Co. certified Chandra’s net worth at approximately ₹59,000 crore in March 2018.
Meanwhile, MPJ and Co. estimated ₹40,562 crore in July. However, during insolvency proceedings, Chandra disputed them. He declared a 2024 net worth of ₹31.79 crore and said his 2017–18 figure never exceeded ₹40,000 crore.
The CBI alleges inflated documentation and misappropriated loan proceeds, while the India Enforcement Directorate inquiry concerns possible laundering. Yet, neither allegation constitutes a proven criminal finding.
₹22,006 Crore Creditor Claims Deepen Recovery Dispute
The India Enforcement Directorate investigation also intersects with creditor recovery from defaults recorded by LIC Housing. A repayment plan offered about ₹6.5 crore from Chandra’s estate against ₹22,006 crore in creditor claims.
Nevertheless, LIC Housing challenged that proposal before the National Company Law Appellate Tribunal. Meanwhile, Zee Entertainment said the India Enforcement Directorate case involved Chandra personally and promoter entities, not its listed operations.
Chandra’s personal response remained pending on November 2. The Indian Enforcement Directorate must establish whether any proceeds involved laundering. For LIC Housing creditors, the unresolved issue is how much money can be recovered.
Related: India’s ED Probes Mudrex, Instadapp Over Alleged FEMA Violations
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