Meet IIT, IIM alumni, started business from zero and opened 1600 outlets across India, but now he is jailed for 20 years due to..., he is...

You must have heard the saying 'Zero to Peak' many times, but today we are going to tell the story of a person who started from zero and built a company with a turnover of 4000 crores on his own. CR Subramanian, a man who once enjoyed a reputation as a successful engineer, banker, and entrepreneur, is now serving a 20-year prison sentence following his conviction for financial fraud. This marks a dramatic fall from grace for a figure who was once highly regarded in the business world.

Who is CR Subramanian?

He is an alumnus of both IIM and IIT Madras, initially made his mark as an engineer and banker. His entrepreneurial journey began in May 1991 with the founding of Viswapriya, a company that provided financial services. Viswapriya quickly gained traction, successfully attracting major investors with its appealing schemes, and thus setting the stage for Subramanian's entry into the business arena. He started his business from zero and late with his hardwork opened 1600 outlets across India.

When CR Subramanian started his business?

In 1997, Subramanian launched Subhiksha, a retail chain that expanded rapidly, eventually operating over 1,600 outlets throughout India. However, Subramanian's fortunes shifted dramatically when it was revealed that he had defrauded numerous investors by diverting their funds into shell companies.

Why CR Subramanian is convicted?

In November 2023, a special court in Chennai, Tamil Nadu, convicted him of defrauding hundreds of investors, sentencing him to 20 years in prison. The court's order confirmed that CR Subramanian had channeled investor assets through a network of shell companies.

Reports indicate that Subramanian has failed to make voluntary deposits for the past decade and has defaulted on over Rs 137 crore owed to depositors across various programs. In addition to the prison sentence, the court has imposed an Rs 8.92 crore fine on Subramanian and a collective fine of Rs 191.98 crore on his companies, with Rs 180 crore allocated for compensating affected depositors.

What was court's order?

According to the court order, these compensation funds, once received by the defaulters, will be transferred to an authorised organisation. This organisation will review documentation submitted by impacted investors and distribute the funds accordingly.

Currently, 587 of Subramaniam's investors are still awaiting reimbursement for their losses.