ED attaches Subhiksha retail promoter's assets

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

The company owned the Subhiksha retail chain network.

In a statement issued here, the ED said the Central Bureau of Investigation (CBI) has chargesheeted Subramanian for defrauding Bank of Baroda to the tune of Rs.77 crore.

The ED had taken up investigation under the provisions of the Prevention of Money Laundering Act, 2002.

According to the ED, its investigations revealed that Subramanian, managing director of Subhiksha Trading, had availed term loan and cash credit totalling Rs.77 crore in 2007 for setting up the Subhiksha chain of stores.

However, the funds were diverted and the entire loan turned bad, the ED said.

According to the ED, four agricultural plots of land totalling 9.59 acres and two vacant plots of land were fraudulently transferred to Triad Trading Services Ltd., a group company.

Properties registered in the name of Subramanian's wife have also been identified.

The value of all the properties has been estimated at Rs.4.5 crore and has been provisionally attached under the Prevention of Money Laundering Act.