‘Double Trouble’ For Subhash Chandra, as CBI Registers an FIR Amid the Ongoing NCLT Proceedings

LATEST DEVELOPMENTS have come around in the Subhash Chandra Insolvency case, with the Central Bureau of Investigation filing a case against the Essel Group Chairman on Saturday, September 5, 2026.

The booking comes for allegedly causing a wrongful loss of over Rs 1,322 crore by Subhash Chandra and others, to LIC Housing Finance (LICHFL) by misrepresenting facts and other statements during loan approvals.

See Also: Subhash Chandra Insolvency Case: How Did the Admitted Claim of Rs 22,000 Crore Come Around and Why Is Chandra Refuting it

According to a report by The Hindu, the First Information Report (FIR) has mentioned the names of Mr Chandra, Vasant Sagar Properties Private Limited and its director Panjak Suroliya, Pan India Infrastructure Private Limited, Digital Subscriber Management and Consultancy Services Private Limited and its director Amish Pandya; Spirit Infrapower and Multiventures Private Limited and its director Rajeev Dholakia; and unknown others. 

CBI Affirms LIC Housing Finance’s Complaint Against Chandra

 LICHFL had lodged a complaint with the CBI on August 31, 2026, and the case was registered on the same day. LIC’s complaint alleged that it had granted two credit facilities on Mr Chandra’s personal guarantees in 2018. 

Of these, one was sanctioned for Vasant Sagar Properties Private Limited and Pan India Infraprojects Private Limited (co-borrower), while the other was extended to Digital Subscriber Management and Consultancy Service Private Limited and Spirit Infropower and Multiventures Private Limited (co-borrower).

Along with these, the FIR also alleged Subhash Chandra’s categorical denial of his stated net worth to the LICHFL, which he had submitted during the approval and disbursal of loans. In the due course of the proceedings under the Insolvency and Bankruptcy Code for the resolution of Chandra’s personal insolvency, LICHFL has alleged that he has denied the net worth mentioned in the Net Worth Certificates earlier. 

Where Did Subhash Chandra Default apart from his Personal Guarantee ?  

On July 6, 2018, Chandra had submitted a Net Worth Certificate stating his net worth to be Rs 40,562 crore. During the Insolvency Proceedings, Chandra had stated his net worth to be Rs 31.79 crore in 2024, and that his net worth in 2027-18 was not Rs 40,000 crore. Seeing things unfold this way, LICHFL has now brought the allegations of ‘defrauding and cheating’ against Subhash Chandra.

In the report by The Hindu, a part of the complaint has been cited which showcases the concerns of the borrowers regarding a potential fleeing by the debtors and their personal guarantor. “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. 

See Also: Subhash Chandra Insolvency Case: NCLT Issues Stay on The Existing Order, Fresh Hearing of The Case to Begin

With the FIR being registered by the CBI, it is unlikely that Subhash Chandra would now be able to materialize his plans to work in Switzerland to pay off the debts. This investigation also comes amidst the ongoing NCLT five-member bench’s proceedings formed on August 31, 2026. The Bench had issued a stay on the earlier order of a Rs 6.5 crore payout, and sought to start the case proceedings afresh. 

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