Zash Investments, the VC firm promoted by Azim Premji has entered into a legal battle with bankrupt Subhiksha as the former has sent legal notices to the Board of Directors, Independent Consultants and Sr. Executives on discharging their duties.
Zash Investments has alleged that Subhiksha’s Board had concealed the true financial health of Subhiksha when the former made Rs 230 cr investment a year ago. Subhiksha was headed by former IITian and IIM-A graduate Mr. R.Subramanian with his bitter skills has managed to make a mini-satyam like fraud.
Zash Investments said,
Premji Invest feels that the liabilities of every board member be fixed for the collapse of the retail chain. No member, either ICICI venture nominee or independent directors, can actually plead innocence, as they were in the control of the company before it collapsed.
The company is undergoing restructuing including infusion of debt to bring it back to operations. However, the company has also failed to pay employee salaries, PF etc and has mounting liablities from vendors as well and is unlikely to see the light very soon.