Studied at IIT, IIM, built his own business empire worth Rs 35000000000, now to remain in jail for 20 years due to…, his name is..

This man, studied at IIT, IIM, built his own business empire worth Rs 35000000000, now is in jail for 20 years. Read details below.

Have you heard of someone who studied at IIT and IIM, started their company, and got embroiled in a fraud that ran into millions of rupees? This is exactly what happened to R. Subramanian. It is a fascinating story of success, but it lost it all suddenly. An accomplished banker, entrepreneur, and engineer is now in jail.

Who is this IIT and IIM graduate who is serving a 20-year jail term?

Subramanian attended the Indian Institute of Technology (IIT) and the Indian Institute of Management (IIM). He was also the founder of the retail brand Subhiksha. Although eventually, he was convicted of cheating investors. A special court in Chennai sentenced him to 20 years in prison on November 20, 2023. He was once hailed as a retail pioneer in India.

According to a NavBharat Times report, Subramanian founded a company called Vishwapriya in May 1991. The company offered financial services and had attractive schemes that attracted the attention of many investors. Then, in 1997, he established Subhiksha, which launched at more than 1,600 locations throughout the country. Ultimately, due to Subramanian’s actions, hundreds of investors were cheated. Their money had ultimately disappeared through a series of shell companies. To date, 587 investors have not yet been repaid their money.

How many investors were affected by his actions?

In a report by Business Standard(2015), it was stated that Subhiksha opened its first store in Chennai at an investment of $1 million in March 1997. By March 1999, it had increased to 14 stores in Chennai, and by mid-2000, it totaled 50 stores. And by 2006, Subhiksha was in other states such as Gujarat, Delhi, Mumbai, Andhra Pradesh, and Karnataka, including 420 stores. Just two years later, in October 2008, Subhiksha became the top name across India with 1,600 outlets with a complete offering of products, including groceries, fresh produce, pharmaceuticals, and mobile phones.

If media reports are to be believed, then, by that time, the company was valued at Rs 3,500 crore. Furthermore, Subramanian was once trusted from some major players such as Azim Premji, ICICI Ventures, and Kotak Mahindra Bank. However, in a twist they never saw coming, everything happened all at once.

In the last 10 years, Subramanian has not made any voluntary deposits. He owes depositors over Rs 137 crore and has been unable to pay. As a consequence, the court imposed a fine of Rs 8.92 crore on him. In a like manner, the guilty organizations were fined Rs 191.98 crore. 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.