Govt receives complaint against Shubiksha

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:00 AM IST

The government today said it has received a complaint from an ex-employee of Subhiksha alleging that the company had not paid salary for three months and closed all units without any communication.

"Anil Kumar, an ex employee of the company has made a complaint alleging non-payment of salary for three months and closure of all units without any communication from the management," Corporate Affairs Minister Salman Khurshid told the Rajya Sabha in a written reply.

Earlier, employees of Chennai-headquartered Subhiksha had laid siege to the local head office alleging non-payment of salaries. In Chennai alone, there are about 1,000 employees, both on contract and on the roll, who have not received their pay packets since October 2008.

The cash-strapped retail chain had also acknowledged that salary cheques of some of its employees had not been honoured due to non-availability of liquidity.

It has been alleged that there has been a diversion and mismanagement of funds of the company. The Registrar of Companies had recommended inspection of its books of accounts.

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First Published: Jul 27 2009 | 3:57 PM IST

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