Subhiksha Promoter Sentenced To 20 Years For Defrauding Investors In Massive Scam

R. Subramanian, the mastermind behind the retail giant Subhiksha, has been sentenced to 20 years in prison for orchestrating a sophisticated fraud that duped hundreds of investors. The order, dated November 20, 2023, exposes Subramanian's intricate web of deception, leading to his conviction by a special court in Chennai under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act.

A distinguished alumnus of IIT and a graduate of IIM, Subramanian, also a gold medalist engineer from IIT Madras, founded Viswapriya India Ltd in 1991. This financial services company, Subramanian's inaugural venture, lured investors into four schemes-Prime Invest, Asset-Backed Security Bond, Liquid Plus, and Safety Plus. The schemes promised lucrative returns, but Subramanian and his accomplices failed to deliver on their commitments.

The court's judgment reveals a pattern of deceit where depositors were first enticed to invest in the schemes. Upon maturity, they were persuaded to reinvest in new schemes, only to find that the matured amounts were not returned. This orchestrated scam resulted in substantial financial losses for the investors.

Viswapriya's deceptive practices affected 587 investors who are still awaiting compensation. Subramanian himself admitted to defaulting on over Rs 137 crore to depositors across all schemes, and shockingly, he has not made any voluntary deposits for the past decade.

The court, recognizing the severity of the crimes, imposed a fine of Rs 8.92 crore on Subramanian and a staggering Rs 191.98 crore on the entities involved. Notably, Rs 180 crore of this amount is earmarked specifically for compensating the affected depositors. To ensure a fair distribution, the compensation funds will be transferred to a competent authority, which will meticulously verify the documents of the affected investors, in accordance with the court's order.