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Delhi: Ex-Religare Krishnan Subramanian held in connection with siphoning of over Rs 2,300 cr

Highlights Former Group CEO of Religare Enterprises Limited held in connection with siphoning off public money The accused has been identified as Krishnan Subramanian RFL filed a complaint against Malvinder Mohan Singh, and others holding key managerial posts

The Economic Offences Wing of Delhi Police has arrested a former Group CEO of Religare Enterprises Limited in connection with siphoning off public money of over Rs 2,300 crore, officials said. The accused has been identified as Krishnan Subramanian, a resident of Rohini in northwest Delhi, they said.

According to police, Manpreet Singh Suri, AR of Religare Finvest Ltd (RFL), filed a complaint against Malvinder Mohan Singh, Shivinder Mohan Singh, Sunil Godhwani and others holding key managerial posts, alleging that these people having absolute control on Religare Enterprises Limited (REL) and its subsidiaries put RFL in poor financial condition by way of disbursing loans to companies having no financial standings.

These companies willfully defaulted in repayments and caused wrongful loss to RFL to the tune of Rs 2,397 crore. This was also pointed out and flagged during their independent audit by RBI and SEBI, police said.

Subramanian was the Group CEO of REL during 2017-2018. A loan against property worth Rs 115 crore was sanctioned as secured loans to three entities -- Best Health Management Pvt Ltd, M/s Vitoba Realtors Pvt Ltd and Devera Developers Pvt Ltd -- vide three separate loan facility agreements, and property documents of Asola land was kept as security with RFL, they said.

Subsequently, these loans were converted to unsecured loans under the corporate loan book portfolio as title deeds of these lands were never submitted to RFL. Later on, it was found that the land which was kept as security with RFL had been exchanged without any permission or intimation to RFL, a senior police officer said.

"It was also found that the property documents were released to the borrower after execution of share pledge agreement on January 10, 2018 with RHC and Elive under which the shares of Elive were pledged and the trade mark certificates with respect to Religare brand were deposited with RFL. The said SPA and subsequent release of property papers were done by Subramanian," Additional Commissioner of Police (EOW) R K Singh said.

Malvinder and Shivinder along with three others have already been arrested in the case. Subramanian was held on Wedneday, he said.

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An alumna of INSEAD and Mckinsey, she has had over 16 years of experience in technology, consumer and retail sectors. Prior to joining Zivame, she was heading the Arvind Sports Lifestyle business and the Digital Centre of Excellence for the Arvind Group. Through the course of her career, she has been leading the growth and transformation initiatives for various multinational consumer goods, and apparel brands.

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According to a PTI report: The company had posted a net profit of Rs 35.13 crore in the July-September quarter a year ago, Future Lifestyle Fashions (FLF) said in a BSE filing.

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