Latest news with #Subhiksha
India.com
12-06-2025
- Business
- India.com
Studied at IIT, IIM, owned business empire worth Rs 35000000000, this 'king of retail market' is serving 20-year jail term due to…, he is...
It is common for us to read about people who succeed against the odds, but once in a while, a story stops you in your tracks. This is one such journey that has ambition, achievement, and downfall all wrapped together. This individual excelled across several domains, including banking, business, and engineering. He was an IIT graduate. He held an IIM degree. He was once hailed as a retail pioneer in India. The same man, once on the cover of leading magazines because of his retail group, turned out to be R. Subramanian. You guessed it! The same R. Subramanian who was the brainchild and force behind Subhiksha, a once 'broadly acclaimed' retail group that went from being a supermarket chain, convenience store, pharmacy, and most notably – a place to grab things quickly – to a business that failed. 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. According to the court ruling on November 20, 2023, the distinguished IIT graduate and IIM alumnus was found guilty by a special court in Chennai of defrauding hundreds of investors. The court sentenced him to a 20-year sentence. It began in May 1991 when Subramanian first dipped his toe into business and started Viswapriya, which claimed to be a financial services company. Things quickly began to take off, and major investors came to the table with their schemes that showed promise. Subramanian didn't have any allies or backers; he had nothing more than hard work and the belief he had in his idea. After a long journey, he disputed all limits of human aspiration and opened 1,600 outlets across India. According to the Business Standard report (2015), Subhiksha opened its inaugural store in Chennai with an investment of $1 million in March 1997. By March 1999, it had expanded to 14 stores in Chennai, with 50 stores open by mid-2000. By 2006, Subhiksha had established itself in other states of Gujarat, Delhi, Mumbai, Andhra Pradesh, and Karnataka, opening 420 stores. Just two years later (October 2008), Subhiksha had become a common name in India, boasting 1,600 outlets and providing everything from groceries, fresh produce, pharmaceutical products, and 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. The court has fined him Rs 8.92 crore and the companies have collectively been penalized Rs 191.98 crore, of which Rs 180 crore is for compensating the depositors affected by the actions of the companies. The court has directed the amounts to be transferred to a designated authority to verify the investors' claim and to distribute the amounts as appropriate.
India.com
02-06-2025
- Business
- India.com
Meet man who built Rs 3,500 crore business,1600 outlets across India, now has lost everything, spending time in jail due to...
Meet man who built Rs 3,500 crore business,1600 outlets across India, now has lost everything, spending time in jail due to... Rise nd Fall of CR Subramanian: The story of businessman CR Subramanian is no less than a Bollywood movie, in which a man achieved success but later loses everything, ending up in jail. Subramanian studied in prestigious institutes like IIT and IIM. He proved his talent in sectors like engineering, banking, and business. While studying at IIT, he dreamt big, and after completing his studies, he did everything it took to fulfil those dreams. He went to such an extent to turn his dreams into reality that today he is spending his life in jail. Let's know the story of C.R. Subramanian. 587 Investors Raised Over Rs 137 Crore In 1991, after completing his studies, Subramanian started his first company named Vishwapriya Financial Services. The NBFC company promised to give people a better return on their investments than other companies. The company started several schemes to attract as many investors as possible. Schemes such as Prime Invest, Asset Backed Security Bond, Liquid Plus and Safety Plus were quite popular among investors. As per reports, 587 investors invested more than Rs 137 crore in Vishwapriya. Retail Chain 'Subhiksha' After Vishwapriya Financial Services, Subramanian started a retail chain – Subhiksha in Chennai in the year 1997. The company dealt in grocery items, fruits, vegetables, medicines and mobile phones. Subhksha, which started with an investment of USD 1 million, promising low price and high sales, quickly became popular and spread across the country. Its stores were opened even in small cities and towns. By October 2008, Subhiksha had 1,600 stores across the country. Gradually, the company became one of the largest retail companies in the country. Subramaniam's business got investments from big investors like Azim Premji, ICICI Ventures and Kotak Mahindra Bank. The Money Game Subramanian had raised money from investors through Vishwapriya. To expand Subhiksha, he used Vishwapriya's tremendous marketing, competition, and personal contracts. People were lured with 15 to 20 percent returns through brokers. Money was taken from investors and invested in Subhiksha without their knowledge. Money was taken from new investors and given to old investors. People had no clue from where the money was coming. But the flow had increased the trust of investors. All went well until 2008. After this, Subhiksha started facing a cash crunch. Employees' salaries and PF were not paid. The dues of the companies supplying the goods continued to increase. To address the situation, Subramaniam began diverting investors' money by creating more than 80 shell companies. He was accused of cheating investors, and Subhiksha was shut down in 2009. In 2015, the Economic Offences Wing registered a case against Subramaniam. Investigation revealed that he did not repay the loan of Rs 77 crore of Bank of Baroda. In 2018, the ED arrested Subramaniam on charges of money laundering. 20 Years Of Imprisonment A Chennai court convicted Subramaniam on November 20, 2023, for defrauding investors. He misused investor funds via shell companies, failing to return over 137 crore rupees belonging to 587 individuals. The court sentenced him to 20 years imprisonment and levied an 8.92 crore rupee fine against him, and a 191.98 crore rupee fine against his companies. 180 crore rupees of this will be used to compensate victims, with a designated agency tasked with processing claims and distributing the funds.
India.com
24-05-2025
- Business
- India.com
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.
India.com
18-05-2025
- Business
- India.com
R Subramanian, studied at IIT, IIM, once king of retail market, owned Rs 3500 crore business, now to remain in jail for 20 years due to...
R Subramanian- File image R Subramanian is an alumnus of IIT and a graduate of IIM. Known across India for being the founder of the retail chain Subhiksha, engineer R Subramanian 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 determined that he had diverted their assets through a network of shell companies, leading to his conviction and a sentence of 20 years in prison. The story of R Subramanian indicates how you can move from hero to zero from a single mistake. Mistake that led to fall of R Subramanian The court ruling announced that engineer R Subramanian, the IIT Madras alumnus, was found guilty by a special court in Chennai of defrauding hundreds of investors. The court accepted that Subramanian had diverted the assets of the company through a network of shell companies. As a result of these actions, he was sentenced of 20 years in prison. R Subramanian was a very hard working person and after working for two years in the market, he started Vishwapriya to offer financial services and later launched Subhiksha in 1997. With the growth of Subhiksha , over 1600 retail stores of the company were opened across India in the next few years . As per media reports, the worth of the company had reached Rs 3500 crore by then. Moreover, he was once trusted by Azim Premji, ICICI Ventures and Kotak Mahindra Bank. The stores offered a variety of products and gained attention from major investors like Wipro's Azim Premji and ICICI Bank. However, Subramanian ran a Ponzi- like scheme, diverting investor funds through shell companies and promising high returns. In 2023, he was sentenced to 20 years in prison and fined heavily after admitting to a Rs 137 crore fraud, leading to Subhiksha's collapse. Why R Subramanian was arrested! R Subramanian, the Promoter and Managing Director of Subhiksha of the retail chain that sold products under the category of FMCG (Fast Moving Consuming Goods), pharma, groceries, fruits and vegetables, was arrested under the provisions of Prevention of Money Laundering Act, 2002. An investigation by the ED revealed that Subramanian had an unpaid loan of Rs 77 crore to his name for the purpose of establishing the chain of stores. (With inputs from agencies)
