Subhiksha founder Subramanian's assets attached

R Subramanian as allegedly defaulted payment to banks and other investors and is facing legal cases in various courts

The Enforcement Directorate (ED) has attached properties worth Rs 4.5 crore belonging to R Subramanian, promoter and managing director of retail chain Subhiksha Trading Services.

K S V V Prasad, joint director of ED Chennai zone, said the case was taken by the ED for investigation under the provisions of Prevention of Money Laundering Act, 2002. During investigation, it was found that Subramanian availed term loan and cash credit of Rs 77 crore from Bank of Baroda in 2007. However, the funds, meant for setting up the retail chain, were fraudulently diverted by Subramanian, said the ED.

Read more from our special coverage on "ENFORCEMENT DIRECTORATE"

• ED to seek help of RBI, Sebi
• Big lenders submit loan documents related to Vijay Mallyas Kingfisher Airlines to ED

Subramanian, an Indian Institute of Management — Ahmedabad gold medalist, has allegedly defaulted payment to banks and other investors and is facing legal cases in various courts. The department also found that four agricultural land parcels of 9.59 acres and two vacant land plots were fraudulently transferred in the name of Triad Trading Services Ltd, a group company of Subramanian.

Another two properties in the name of his wife located at Marakanam and Neelangarai were also identified by the ED for attaching.  Problems had begun for Subhiksha in October 2008, when it started receiving legal notices for outstanding payment. In January 2009, the retail chain was forced to shut down around 1,600 retail shops following a cash crunch as well as a Rs 750-crore default to as many as 13 banks.

TOUGH TIME

• Case was taken up by the ED for investigation under the provisions of Prevention of Money Laundering Act, 2002
   
• ED said Subramanian (pictured) fraudulently diverted funds, meant for setting up the retail chain
   
• He allegedly defaulted payment to banks and other investors and is facing legal cases in various courts
   
• Investigators also found that four agricultural land parcels and two vacant land plots were fraudulently transferred in the name of a Subramanian's group company
   
• In Jan 2009, the retail chain was forced to shut down around 1,600 retail shops following a cash crunch
   
• Subhiksha  defaulted Rs 750-crore  to as many as 13 banks