After going through the stages of RoC (Registrar of Companies) and then Ministry of Corporate Affairs last week, the investigation of the struggling retailer, Subhiksha Trading Services has been handed over to the Serious Fraud Investigation Office (SFIO).
The case was filed with RoC last year on the complaint of a group of investors, ICICI venture and Zash Investment who have charged the management of the retail chain with keeping its investor in dark on the financial issues of the company.
RoC’s scrutiny under Section 209 (A) of the Companies Act included looking into the books of Subhiksha since 2007.
Subhiksha’s audited accounts are available only as of April 2007, as per which it had a turnover of Rs 840 crore and profit before tax of Rs 18 crore.
There are numerous cases against the retail chain by Kodak Mahindra bank, some other creditors and bankers.
Subhiksha was forced to shut down all the operations due to cash crunch last year and after that the financial position of the company came into the lime light.