ED registers money laundering case against Subhash Chandra over LICHFL loan fraud
The investigation follows allegations that the Zee founder inflated his net worth to secure loans that resulted in a Rs 1,322 crore loss.
The Enforcement Directorate (ED) has registered a money laundering case against Zee Group founder and former Rajya Sabha MP Subhash Chandra under the Prevention of Money Laundering Act (PMLA). The move follows a Central Bureau of Investigation (CBI) FIR filed after a complaint by Life Insurance Corporation Housing Finance Limited (LICHFL).
According to reports from The Indian Express and The Pioneer, the probe concerns an alleged loan fraud that caused a Rs 1,322 crore loss to LICHFL. It is alleged that Chandra used inflated net worth certificates to obtain loans totalling Rs 980 crore, which subsequently defaulted.
The CBI FIR details two loan facilities. The first was a Rs 500 crore home entity loan to Vasant Sagar Properties Private Limited and co-borrower Pan India Infra Projects Private Limited, for which Chandra provided a guarantee on 28 March 2018. The second was a Rs 480 crore rental discounting facility to Digital Subscriber Management and Consultancy Services Private Limited and co-borrower Spirit Infra Power and Multi Ventures Private Limited.
LICHFL alleged that Chandra submitted two net worth certificates to secure the loans. One certificate from DJM and Co dated 28 March 2018 valued his net worth at approximately Rs 59,000 crore, while a certificate from MPJ and Co dated 6 July 2018 valued it at Rs 40,562 crore.
During insolvency proceedings, Chandra denied the net worth mentioned in the certificates. He stated his 2024 net worth was Rs 31.79 crore and claimed it did not exceed Rs 40,000 crore in 2017-18.
A spokesperson for Zee Entertainment Enterprises Ltd (ZEEL) said the ED case was filed against Chandra in his personal capacity. The spokesperson stated the matter pertains to Chandra and promoter entities and has no bearing on ZEEL or its operations.