Subhiksha MD held for Rs 77 crore fraud

CHENNAI: The Enforcement Directorate, Chennai, on Tuesday night arrested R Subramanian, promoter and managing director of Subhiksha Trading Services Limited, a retail chain of stores with the brand name of “Subhiksha.” He was arrested under the provisions of the Prevention of Money Laundering Act, 2002.
Subramanian was earlier charge-sheeted in a bank fraud case by the Central Bureau of Investigation (bank security & fraud cell), Bengaluru, for defrauding Bank of Baroda, Corporate Financial Services Branch, Chennai, to the tune of Rs 77 crore.
The investigation by the ED under PMLA, revealed that Subramanian, managing director and main person behind the company, availed term loan and cash credit amounting to Rs 77 crore for the purpose of establishing the chain of stores and fraudulently diverted the funds. The entire loan amount was at default, the ED said.
During the course of investigation by the ED, it was found that that in the name of “Subhiksha” chain of stores, Subramanian had availed a total loan of around Rs 790 crore from a consortium of banks and had not repaid the loan amount and the cases are pending before the DRAT, Chennai.
The ED had already attached immovable properties possessed by him in his name and his family members’ name valued at Rs 4.50 crore under the provisions of Prevention of Money Laundering Act.
He was also the main person behind another case of non-refund of deposit money and interest, amounting to Rs 150 crore, to the depositors registered by the Economic Offences Wing, Chennai.
He was remanded in judicial custody.