The Enforcement Directorate on Wednesday arrested R Subramanian, the founder, promoter and managing director of retail chain Subhiksha, in a bank fraud case.
Subramanain was booked under provisions of the Prevention of Money Laundering Act, 2002, and remanded in judicial custody for seven days, The Hindu reported. He operated retail chains under the Subhiksha brand, but financial problems had forced the outlets shut.
In an official statement, the Enforcement Directorate said Subramanian took a term loan and cash credit worth Rs 77 crore from the Bank of Baroda to establish the Subhiksha chain of stores. He allegedly diverted the funds fraudulently, and the entire loan amount was at default, the agency said.
The Enforcement Directorate said Subramanian had also taken Rs 790 crore in loans from a consortium of bankers, all in the name of the Subhiksha stores. He has not repaid any of these loans, and the cases are pending at the Debt Recovery Appellate Tribunal in Chennai, The Hindu reported.
The investigative agency took over the case based on a First Information Report and chargesheet the Central Bureau of Investigation had filed. In 2017, the directorate attached assets worth Rs 4.5 crore that belonged to Subramanian and his firms under the Prevention of Money Laundering Act.