MCA seeks explanation for lapses from Subhiksha ex-Directors

The ministry for corporate affairs (MCA) has found lapses in the books of troubled retailer Subhiksha and is now seeking answers from its former directors.

MCA had ordered inspection of Subhiksha's accounts last year acting on complaints from a clutch of investors and former employees alleging mismanagement of funds. It is learnt that the Chennai-based south zone office of the MCA completed inspection of accounts a few weeks back.  

Following the inspection, the zonal office sent notices to Subhiksha's promoter and managing director R Subramanian and its former directors a fortnight back, calling for explanations on a series of queries. The notices raise questions about procedural lapses and usage of funds.  

Incidentally, Subhiksha has reopened a few stores under a franchisee by name Triad Trading Services. Three stores in Thiruvanmiyur, Triplicane and Ambattur in Chennai have become operational since February 3.