Meet man who studied at IIT, IIM, owned business empire worth Rs 35000000000 now to remain in jail for 20 years due to…
Meet man who studied at IIT, IIM, owned business empire worth Rs 35000000000 now to remain in jail for 20 years due to…
We've all grown up hearing stories of people rising from poverty to wealth and success. However, some stories leave you in awe. This story is full of turns and twists. This individual excelled across several domains, including banking, business, and engineering. Despite being an alumnus of IIT and a graduate of IIM, he is jailed for 20 years due to….Well, he is R. Subramanian, the visionary behind the retail chain Subhiksha.
The distinguished IIT graduate and IIM alumnus was found guilty by a special court in Chennai of defrauding hundreds of investors, according to the court ruling on November 20, 2023. The court handed him a 20-year prison sentence.
It all started in May 1991, when Subramanian took his first step into the world of business by founding Viswapriya, a financial services company. Soon the venture began to gain momentum, drawing in major investors with its promising schemes. With no backing and starting from zero, Subramanian relied on nothing but hard work and belief in his vision. Over the years, that relentless drive paid off leading him to open an impressive 1,600 outlets across India.
Going by a Business Standard(2015) report, Subhiksha commenced its first outlet in Chennai in March 1997 with an initial investment of $1 million. By March 1999, the company had expanded to 14 stores in Chennai, and by mid-2000, the count had risen to 50. By 2006, the brand had made its mark in states like Gujarat, Delhi, Mumbai, Andhra Pradesh, and Karnataka, with 420 stores up and running. Just two years later, in October 2008, Subhiksha had become a household name, with 1,600 outlets offering everything from daily groceries and fresh produce to medicines and even mobile phones.
If media reports are to believed, the company's worth had reached Rs 3500 crore by then. Moreover, he was once trusted by Azim Premji, ICICI Ventures and Kotak Mahindra Bank. However, in a dramatic twist, things changed.
Subramanian became involved in a web of financial misconduct, using investor money in questionable ways and making promises of high returns that couldn't be sustained. In 2023, the truth came to light—he admitted to a Rs 137 crore fraud. The fallout was severe: he was sentenced to 20 years in prison and faced hefty fines. This marked the tragic downfall of Subhiksha, a once-thriving retail dream that came crashing down. His involvement in financial misconduct led to investor funds being diverted through shell companies, leaving 587 investors still awaiting their refunds.
It is to be noted that the court has levied a Rs 8.92 crore fine on him and imposed a collective Rs 191.98 crore penalty on the involved entities. Of this, Rs 180 crore has been designated for compensating affected depositors. The court has ordered the funds to be transferred to an authorized body, responsible for verifying investor claims and ensuring proper distribution.
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