India, Nov. 2 -- The Enforcement Directorate (ED) has launched a money laundering investigation against Essel Group chairperson and Zee founder Subhash Chandra in connection with LIC Housing Finance Limited (LICHFL) loans to two companies of the group, which allegedly caused the public sector company a loss of Rs.1,322 crore, people familiar with the matter said. Chandra provided personal guarantees for the borrowings.

Officials, speaking on condition of anonymity, said the ED's probe under the Prevention of Money Laundering Act (PMLA) stems from the Central Bureau of Investigation (CBI) First Information Report (FIR) in the matter on August 31.

"We have registered an ECIR [Enforcement Case Information Report] in the matter," said an of...