New Delh, Nov. 2 -- The Enforcement Directorate has registered a money laundering case against media baron Subhash Chandra in connection with an alleged loan fraud that caused a Rs 1,322 crore loss to Life Insurance Corporation Housing Finance Limited (LICHFL), officials said on Monday.
Chandra is alleged to have inflated his net worth to avail loans from LICHFL and then defaulted on them. The officials said the case has been filed under the Prevention of Money Laundering Act (PMLA), taking cognisance of a CBI FIR.
Responding to the charges, a spokesperson for Zee Entertainment Enterprises Ltd (Z) said the ED filed the case against Chandra in his personal capacity and has no bearing on the company or its operations.
"The company would like to state that the matters pertain to Dr Subhash Chandra and the promoter entities and have no bearing on 'Z' or its operations in any manner," the spokesperson said.
The CBI had earlier filed a case on the complaint of LICHFL, based on which the ED registered the money laundering case.
The LICHFL, in its complaint, alleged that Chandra submitted net-worth certificates used to secure the approval and disbursal of two loans totalling Rs 980 crore. According to the LICHFL's complaint in August, the default on these loans caused a loss of Rs 1,322 crore.
The LICHFL was one of the lenders that approached the National Company Law Appellate Tribunal (NCLAT) against Chandra.
Published by HT Digital Content Services with permission from Millennium Post.