Numerous success stories exist of entrepreneurs starting from zero and turning their lives around. Still, some make terrible mistakes and conduct major financial crimes to make a quick profit, ultimately leading to their demise. One such instance is the case of CR Subramanian, a once well-known engineer, banker, and businessman who was found guilty of financial fraud and is currently serving a 20-year jail sentence.
Who is CR Subramanian?
CR Subramanian is a banker and engineer who graduated from IIT madras and IIM. In May 1991, he established his first business, Viswapriya, which provided financial services. With its alluring strategies, Viswapriya attracted big investors and proved to be a successful endeavor, marking Subramanian's entry into the commercial world.
Six years later, in 1997, Subramanian established his flagship business, Subhiksha, a retail network that quickly expanded to more than 1,600 locations throughout India. But when it came to light that Subramanian had redirected hundreds of investors' money to shell corporations to scam them, his life took a sharp turn.
IITian to Convict
He was convicted of scamming hundreds of investors by a special court in chennai, tamil Nadu, in november 2023, and given a 20-year prison sentence. In its decision, the court found that CR Subramanian had used a network of shell corporations to siphon off his investors' money.
Reports state that Subramanian has defaulted on more than Rs 137 crore owed to depositors across all programs and has not made any voluntary deposits in the last ten years.
In addition to the jail sentence, the court fined Subramanian Rs 8.92 crore and fined his firms a total of Rs 191.98 crore, of which Rs 180 crore was set aside for compensating the impacted depositors.
Following receipt by the defaulters, the compensation monies will be transferred to an approved organization by the court decision. This organization will then examine the documentation provided by the affected investors and allocate the funds appropriately.
Up to 587 Subramaniam investors have yet to get compensation for their losses.
Who is CR Subramanian?
CR Subramanian is a banker and engineer who graduated from IIT madras and IIM. In May 1991, he established his first business, Viswapriya, which provided financial services. With its alluring strategies, Viswapriya attracted big investors and proved to be a successful endeavor, marking Subramanian's entry into the commercial world.
Six years later, in 1997, Subramanian established his flagship business, Subhiksha, a retail network that quickly expanded to more than 1,600 locations throughout India. But when it came to light that Subramanian had redirected hundreds of investors' money to shell corporations to scam them, his life took a sharp turn.
IITian to Convict
He was convicted of scamming hundreds of investors by a special court in chennai, tamil Nadu, in november 2023, and given a 20-year prison sentence. In its decision, the court found that CR Subramanian had used a network of shell corporations to siphon off his investors' money.
Reports state that Subramanian has defaulted on more than Rs 137 crore owed to depositors across all programs and has not made any voluntary deposits in the last ten years.
In addition to the jail sentence, the court fined Subramanian Rs 8.92 crore and fined his firms a total of Rs 191.98 crore, of which Rs 180 crore was set aside for compensating the impacted depositors.
Following receipt by the defaulters, the compensation monies will be transferred to an approved organization by the court decision. This organization will then examine the documentation provided by the affected investors and allocate the funds appropriately.
Up to 587 Subramaniam investors have yet to get compensation for their losses.
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