ED Registers Money Laundering Case Against Subhash Chandra Over Alleged ₹1,322 Crore LIC Housing Finance Loan Fraud

The case follows a CBI FIR based on a complaint from the lender. The allegations are yet to be tested in court.

The Enforcement Directorate (ED) has registered a money laundering case against Essel Group chairman and Zee founder Subhash Chandra over an alleged loan fraud involving LIC Housing Finance Limited (LICHFL), Business Standard reported. The lender says it suffered a loss of about ₹1,322 crore. The Economic Times and Hindustan Times also reported the probe.

The ED has begun its investigation under the Prevention of Money Laundering Act (PMLA) after an FIR by the Central Bureau of Investigation (CBI), which was based on LICHFL’s complaint. Everything below is an allegation by the lender or the agencies, not a proven finding. In the reports reviewed, no response from Chandra was available.

What the lender alleges

The CBI registered its FIR on August 31, 2026, according to Free Press Journal. LICHFL’s complaint concerns two loan facilities sanctioned in 2018 worth ₹980 crore in total. It alleges that the approvals relied on net-worth certificates that overstated Chandra’s financial position, and that the loans later turned into defaults.

• ₹500 crore facility: extended to Vasant Sagar Properties Private Limited, with Pan India Infra Projects Private Limited as co-borrower.
• ₹480 crore facility: extended to Digital Subscriber Management and Consultancy Services Private Limited, with Spirit Infra Power and Multi Ventures Private Limited as co-borrower.

Both facilities were reportedly backed by personal guarantees from Chandra. LICHFL puts its wrongful loss at about ₹1,322 crore.

The net-worth figures at the centre of the case

According to the complaint, as reported, one certificate put Chandra’s net worth at about ₹59,113 crore as of March 31, 2017, and another, dated July 6, 2018, at ₹40,562 crore, Outlook Business reported, citing NDTV Profit.

LICHFL alleges that these figures were inflated, pointing out that in personal insolvency proceedings in 2024 Chandra put his net worth at ₹31.79 crore. Your source also says Chandra reportedly disputed the certificates’ figures during those proceedings and maintained his net worth had not exceeded ₹40,000 crore in 2017–18.

From the CBI to the ED

The CBI is investigating allegations of criminal conspiracy, cheating, criminal breach of trust and misappropriation involving Chandra, the borrower companies and others, as The Wire reported. The ED’s money laundering probe is expected to examine how the loan proceeds moved and were used, along with the transactions linked to the borrowing entities.

The case arrives amid Chandra’s personal insolvency proceedings. LICHFL was reportedly among the lenders that challenged a repayment plan approved by the National Company Law Tribunal, which reportedly offered much lower recovery than the lenders’ claims.

Zee Entertainment’s position

Zee Entertainment Enterprises Limited has said the matter concerns Chandra in his personal capacity and certain promoter entities, and has no bearing on Zee Entertainment or its business operations. The investigation relates to transactions involving Chandra and Essel Group-linked entities, not the day-to-day business of the listed company.

What comes next

The ED will now examine the loan facilities, the documents submitted to the lender and how the funds were used. The allegations remain subject to investigation and judicial proceedings. The case also puts a spotlight on lender due diligence, personal guarantees and accountability in large corporate borrowing.

Sources: Business Standard, The Economic Times, Hindustan Times, Free Press Journal, Outlook Business, Republic, The Wire. The allegations have not been established in court.