Chennai: Subhiksha founder Subramanian held
He is facing 11 civil cases, 4 criminal cases
By : DC Correspondent
Update: 2015-09-20 06:34 GMT
Chennai: Sleuths of EOW arrested R. Subramanian, 49, founder of defunct department store chains Subhiksha on Saturday in connection with investment fraud in more than two scores of finance firm he had started after passing out from IIT (M) and IIM (A) with flying colours.
According to the police, he was arrested when he came back to Chennai from Hyderabad where he had been hiding since the first week of August. Already seven of his directors, including a retired CMD of a nationalised bank, were arrested by the police in connection with the case.
He is currently facing 11 civil cases including cases in debt recovery tribunal negotiable instrument act cases amounting to over Rs 400 crore from different banks including two nationalised banks. He is also facing four criminal cases including two in EOW and one which is being probed by CBI.
Subramanian started Viswapriya Financial Services in 1991 and he began Subhiksha store with an investment of Rs 1,200 crore in 1997. The store closed in 2009. EOW has so far received complaints from 300 people against Viswapriya Financial Services and other similar 48 firms operated by him. The police believe that 4,000 people have invested about Rs 150 crore in these firms.