Business · India Bureau
ED launches money laundering probe against media mogul Chandra over loan default
The Enforcement Directorate has opened a money laundering investigation against media baron Subhash Chandra following allegations of loan fraud that resulted in over Rs 1,300 crore in losses to a housing finance company. Chandra is accused of submitting inflated net worth certificates to secure loans that he subsequently defaulted on.
LSN India ·
The federal financial crime agency registered the case under the Prevention of Money Laundering Act after taking cognisance of a First Information Report filed by the Central Bureau of Investigation, officials confirmed on Monday. The action stems from a complaint lodged by Life Insurance Corporation Housing Finance Limited, which alleged substantial financial losses due to fraudulent loan transactions.
According to LICHFL's complaint, Chandra obtained two loans totalling Rs 980 crore by submitting falsified net worth certificates to secure approval and disbursement. The lender claims the subsequent default on these facilities resulted in a total loss of Rs 1,322 crore, causing significant financial damage to the institution.
The CBI had initiated its investigation based on LICHFL's formal complaint, which detailed the circumstances of the alleged fraud. Following the CBI's filing of the case, the Enforcement Directorate independently registered a money laundering investigation to examine the movement and layering of funds connected to the transactions.
Official sources indicated that the case involves systematic misrepresentation of financial credentials to obtain credit facilities. The investigation is ongoing, and authorities are examining the financial transactions and documentation associated with the loan approvals. A formal statement from Chandra regarding the allegations was not immediately available.