The CBI has registered a criminal case against Essel Group founder Subhash Chandra and several entities linked to the group over an alleged Rs 1,322-crore fraud involving LIC Housing Finance Ltd (LICHFL), marking a major escalation in the legal troubles surrounding the businessman.The FIR, registered on August 31 on the basis of a complaint by LICHFL, alleges criminal conspiracy, cheating, criminal breach of trust and criminal misconduct in connection with loans extended to companies linked to Chandra. The alleged loss, according to the complaint, stands at about Rs 1,322 crore.The FIR invokes Section 120B read with Sections 409 and 420 of the IPC, along with provisions of the Prevention of Corruption Act.At the heart of the complaint is an alleged discrepancy in the assessment of Chandra’s personal net worth.According to the lender, two credit facilities — one of Rs 500 crore and another of Rs 480 crore — were backed by Chandra’s personal guarantees.The complaint alleges that one certificate submitted in connection with the facilities put Chandra’s net worth at around Rs 59,113 crore, while another placed it at Rs 40,562 crore.The lender has alleged that the figures were used to induce it to sanction and disburse the loans.The complaint further states that Chandra subsequently took a sharply different position during his personal insolvency proceedings, denying the net worth reflected in the earlier certificates and stating that his net worth was only Rs 31.79 crore in 2024.The discrepancy forms a key plank of LICHFL’s allegations, with the lender claiming that documents showing an inflated net worth were created and submitted as part of a broader conspiracy to secure the loans.The complaint also alleges that Chandra and the borrower entities acted in collusion, that loan funds were misapplied and that assets were stripped or otherwise dealt with in a manner that allegedly sought to frustrate recovery by lenders.The financial stakes are substantial. The lender has an admitted claim of about Rs 1,322.39 crore, but the repayment plan reportedly provides it only around Rs 38.09 lakh. LICHFL, along with Canara Bank and Union Bank, has challenged the outcome of the insolvency proceedings.The housing finance company has separately maintained that its security interest in the underlying mortgaged assets remains intact. The lender has also asserted that Chandra’s personal insolvency proceedings do not extinguish the liabilities of the principal corporate borrowers.