The CBI has alleged that Subhash Chandra submitted inflated net worth certificates to help secure two LICHFL loans worth ₹9.8 billion. (File Photo)

The CBI has registered an FIR against media baron Subhash Chandra for allegedly inflating his net worth to avail loans from Life Insurance Corporation Housing Finance Ltd (LICHFL), which became default, causing over ₹1,322 crore loss to the public sector lender, officials said Saturday.

The LICHFL has alleged in its complaint, which is now part of the FIR, that Chandra submitted net worth certificates that were used to secure approval and disbursal of two loans totalling ₹980 crore.

There as no immediate reaction from the accused named in the FIR.

According to the complaint, the ₹500-crore Vasant Sagar facility was sanctioned as a home entity loan for takeover, top-up and business expansion, and was secured by a continuing guarantee dated March 28, 2018, executed by Chandra.

The ₹480-crore Digital facility was sanctioned as a rental discounting facility under a rental securitisation scheme under the different loan account, and was secured by a continuing guarantee, also executed by Chandra, it alleged.

According to lender, the net worth certification submitted by Chandra was issued by DIM & Co on March 28, 2018, certifying his net worth to be at around ₹59,000 crore.

The LICHFL said the Digital facility was sanctioned partly on the basis of a net worth certificate submitted by Chandra, issued by chartered accountants MPJ & Co on July 6, 2018. The certificate put his net worth at ₹40,562 crore.

The two loans subsequently went into default, according to LICHFL.

According to the FIR, subsequent proceedings under the Insolvency and Bankruptcy Code, 2016, Chandra denied having the net worth stated in the certificates submitted to LICHFL.

During the proceedings, the noted industrialist pegged his net worth in 2024 to be at ₹31.79 crore, and in 2017-18 at no more than ₹40,000 crore, the FIR said.

It also alleged that Chandra created false documents to denote inflated and false net worth to cheat LICHFL into deploying funds to the Principal Borrowers.

"The accused persons breached the trust reposed by LICHFL in misappropriating the funds," it alleged.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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