Chennai: Enforcement Directorate (ED) officials on Tuesday arrested R. Subramanian, promoter and managing director of M/s. Subhiksha Trading Services Limited, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Subramanian ran a popular retail store under the brand name, ‘Subhiksha’ apart from the seasonal retail business and telecom products. He was earlier charge-sheeted in a bank fraud case by Central Bureau of Investigation, (Bank Security & Fraud Cell), Bangalore, for defrauding Bank of Baroda, Corporate Financial Services Branch, Chennai, to the tune of Rs 77 crore. Investigation by ED under PMLA, revealed that Subramanian availed term loan and cash credit totally amounting to Rs77 crore for the purpose of establishing the chain of stores and fraudulently diverted the funds.
The entire loan amount was at default. “It was also noticed that in the name of “Subhiksha” chain of stores, Subramanian had so far availed totally around
' 790 crore from consortium of bankers and had not repaid the loan amount and the cases are pending before the Debt Recovery Appellate Tribunal, Chennai,” an official release said.
ED has already attached immovable properties possessed by him in his name and his family member's name valued at '4.50 crore. He was produced before a magistrate and remanded to judicial custody 7 days. Further investigation is in progress.
