The Central Bureau of Investigation (CBI) has registered a First Information Report (FIR) against Subhash Chandra, founder of Essel Group and Zee, along with several companies and their directors. The case concerns allegations of submitting inflated net worth certificates to secure two loans totaling Rs 980 crore from LIC Housing Finance Ltd (LICHFL). Both loan accounts subsequently defaulted, resulting in an alleged wrongful loss of over Rs 1,322 crore to the lender. The FIR was filed following a complaint by LICHFL, and the investigation is ongoing.According to Financial Express, the complaint alleges that Subhash Chandra submitted net worth certificates in 2018, one valuing his net worth at approximately Rs 59,000 crore and another at Rs 40,562 crore. These certificates were used as key documents for sanctioning the loans. However, during subsequent insolvency proceedings, Chandra disclosed a significantly lower net worth, leading to questions about the authenticity of the earlier certificates.As reported by The Indian Express, the FIR names Subhash Chandra, directors of Vasant Sagar Properties Pvt Ltd, Pan India Infrastructure Pvt Ltd, Digital Subscriber Management and Consultancy Services Pvt Ltd, Spirit Infrapower and Multiventures Pvt Ltd, and unknown others. The loans in question were granted in 2018, with Chandra providing personal guarantees for both facilities. The outstanding amounts cited are Rs 570.50 crore and Rs 507.25 crore for the respective loans.As highlighted by The Hindu, the FIR alleges that Chandra denied having the net worth stated in the certificates during insolvency proceedings. He reportedly claimed his net worth in 2024 was Rs 31.79 crore and that even in 2017-18, it did not exceed Rs 40,000 crore. The complaint further accuses Chandra and the borrower companies of colluding to defraud LICHFL by misrepresenting facts and misappropriating funds."The accused persons have publicly disclosed their intention to leave India and are likely to do so, unless an FIR is registered and an investigation is undertaken at the earliest to trace the proceeds of the loan and assets of the accused persons," the complaint stated.As noted in an article by Deccan Herald, the net worth certificates were issued by different chartered accountancy firms and were central to the approval and disbursal of the loans. The FIR alleges that Chandra, in collusion with the borrower companies and their officers, created false documents to inflate his net worth and induce LICHFL to advance the loans.Modi, Rahul & the Road to 2029: What Surveys Tell us and What They Don'tFurther details indicate that the FIR includes charges of criminal conspiracy, cheating, and criminal breach of trust. The complaint also mentions that the accused persons may attempt to leave the country, prompting the need for urgent investigation to trace assets and loan proceeds.The loans were sanctioned for business expansion and rental securitisation, with Chandra providing continuing guarantees. Recent regulatory changes in Bihar have expanded CBI’s investigative powers, though state consent remains necessary for probes involving state officials."Chandra had been acting in collusion with the borrowers... and their officers and directors defrauded and cheated LICHFL into advancing the loans to the borrower entities, which have since misappropriated the same," the FIR alleged.Insolvency proceedings against Subhash Chandra are ongoing, with a National Company Law Tribunal (NCLT) order approving his repayment plan recently stayed by a five-member bench. Coverage revealed that Chandra has been restrained from transferring his assets until the matter is heard afresh.‘Mirzapur The Movie’ Is a Crackling Banger That Finds Freshness in The FamiliarNote: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.