 "Subhiksha retail's founder sent to six days police custody")
Subramanian was produced before the Court on Tuesday and Wednesday and the Economic Offences Wing of Tamil Nadu Police asked for police custody for enquiry.
The Economic Offences Wing (EOW) of Tamil Nadu police has arrested Subhiksha retail store founder R Subramanian on Saturday in connection with alleged cheating of depositors to the tune of around Rs 150 crore. On Friday, the Madras High Court has refused to give anticipatory bail to him.
According to EOW officials, he was arrested in Chennai on Saturday and will be produced in the court in the evening. He has been charged with sections under TNPID Act, 1997. The Act provides action against Financial Institutions who failed to return the deposit / interest. Arrest of persons responsible.
The Special Court for TNPID Act constituted help in the speedy trial, attachment and sale of properties and for distribution of the money to the depositors. The offence is compoundable and this provision was introduced in Sec. 5A by Act 33/2003 so that the Financial Establishment and the partner will come forward to settle the amount to the depositors speedily. The Amendment in the Act came in to force from 10.11.2003.
The EOW had registered a case against Subramanian for cheating and breach of trust in 2013.
Subramanian started Viswapriya Financial Services Pvt Ltd in 1991. He is an alumni of IIT and IIM and also a gold medalist. He worked with City Bank, Mumbai and Enfield India for a short spell.
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The founder of Subhiksha has been facing 11 civil cases including cases in debt recovery tribunal (DTR) negotiable instrumental Act cases amounting to around Rs 400 crore from different banks including two public sector banks. He is also facing four criminal cases including two cases in EOW, Tamil Nadu and one case filed by Bank of Baroda in CBI, Chennai.
Subramanian founded Subhiksha in 1997 which collapsed in 2009. Total invesmtent in Subhiksha as around Rs 1,200 crore. EOW has registered two cases against Subramanian related to his financial services business and so far 300 complaints has been received for default of around Rs 40 crore. In total there are about 4,000 depositors in Tamil Nadu who have invested about Rs 150 crore with Subramanian.
The investigation agency said that it is ascertained he has collected money or funds from the public under various schemes including fixed deposit schems and debendtures scheme styled as prime invest, liquid plus, safety plus etc.
The agency alleges that Subramanian started nearly 49 companies and also manipulated records. He was absconding since August 6, 2015 after the High Court dismissed his writ petitions, it said.
EOW has put 12 special teams across four states to nab Subramanian.