Meet man who studied at IIT, IIM, built Rs 3500 crore business, ran 1600 retail outlets, then lost everything, is now in jail due to…, his name is…

The story of CR Subramanian, a highly educated and once-successful businessman, sounds like a Bollywood movie. A man who once touched the heights of success is now behind bars for cheating hundreds of investors. Subramanian studied at two of India’s top institutes—IIT and IIM. After completing his studies, he launched his first company in 1991, Vishwapriya Financial Services. This non-banking finance company (NBFC) promised higher returns than other investment options and introduced schemes like Prime Invest, Asset Backed Security Bond, Liquid Plus, and Safety Plus. These attracted a large number of investors. Reports suggest that 587 investors put in over Rs 137 crore in the company.

In 1997, Subramanian entered the retail sector with a new business, Subhiksha. It started in Chennai with an investment of $1 million and quickly expanded across India. Subhiksha offered groceries, fruits, vegetables, medicines, and mobile phones at low prices. By 2008, the company had 1,600 stores across the country and had attracted major investors such as Azim Premji, ICICI Ventures, and Kotak Mahindra Bank.

However, problems began when Subramanian started using money from Vishwapriya investors to fund Subhiksha without informing them. He promised returns of 15–20% and created the illusion of a successful business by using new investors’ money to pay earlier ones.

Things fell apart in 2008. Subhiksha began to struggle financially. Employee salaries and supplier payments were delayed. To cover up the losses, Subramanian created more than 80 fake companies to divert investor money.

Subhiksha was shut down in 2009. In 2015, the Economic Offences Wing filed a case against Subramanian. Later, the Enforcement Directorate (ED) arrested him in 2018 for money laundering and failure to repay a Rs 77 crore loan from Bank of Baroda.

On November 20, 2023, a Chennai court found him guilty of defrauding investors. He was sentenced to 20 years in prison. The court also fined him Rs 8.92 crore personally and Rs 191.98 crore against his companies. Out of this, Rs 180 crore will be used to repay the affected investors, and a special agency has been assigned to handle the claims and distribute the money.