Subhiksha denies any fund diversion, account discrepancy

Cash-strapped retail chain Subhiksha Trading Services today said there were neither discrepancies in its accounts nor diversion of funds, while acknowledging that salary cheques of some of its employees have not been honoured due to non-availability of liquidity.

"We are not aware of any such allegations (account discrepancy and fund diversion) at all and this is the first time we are hearing about this. Obviously these allegations are false and motivated and deserve to be treated with contempt," Subhiksha Trading Services Managing Director R Subramanian told PTI.

Subramanian's comments come in the wake of reports that employees of the retail chain were planning to file case for "dishonouring pay cheques" while alleging the company of "diverting funds and fudging the accounts".

He, however, admitted that the salary cheques of some employees have not been honoured and blamed the situation for non-availability of funds.

"We have admitted that salaries are in arrears since October 2008. Some pay cheques for October and November 2008 dated mid-January 2009 or so were issued based on assurance that we would be receiving some money as an interim measure. Such money did not materialise and the cheques could not be honoured," Subramanian said.