The Enforcement Directorate (ED), Chennai, on Wednesday arrested R. Subramanian, promoter and managing director of Subhiksha Trading Services Limited, in a bank fraud case. He was booked under the provisions of the Prevention of Money Laundering Act, 2002.
He was remanded in judicial custody for seven days by the Chennai XIV Metropolitan Magistrate.
The company founded by Subramanian operated retail chains under the brand Subhiksha. However, the outlets were closed due to financial problems.
Subramanian was earlier chargesheeted 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 ₹77 crore.
In an official release, the ED said its investigation revealed that Subramanian had availed term loan and cash credit amounting to ₹77 crore for the purpose of establishing a chain of stores and had fraudulently diverted the funds.
The entire loan amount was at default.
During the course of its investigation, the ED noticed that in the name of the ‘Subhiksha’ chain of stores, Subramanian had so far availed around ₹790 crore from a consortium of bankers and had not repaid the loan amount. The cases are pending before The Debt Recovery Appellate Tribunal at Chennai.
Property attached
The ED has already attached immovable property possessed by Subramanian in his name and his family members’ names, valued at ₹4.50 crore. He was also the main person behind another case of non-refund of deposit money and interest totally amounting to ₹150 crore to depositors. A case in this connection was registered by the Economic Offences Wing, Chennai.
