New Delhi: Azim Premji-owned Zash Investments, which have a 10% stake in cash-strapped retail chain Subhiksha, has sent legal notices to six serving and former directors of the company charging them of failure in “performing official duty”.
“Yes, we have given some notices to the directors of Subhiksha. However, we do not want to get into the details right now and we are waiting for the response (from the directors),” a Zash Investments official said.
Zash Investments had acquired 10% stake in Subhiksha from ICICI Venture in late 2008 for Rs230 crore. Soon thereafter, the retail chain’s business collapsed due to liquidity crunch resulting in closure of all its 1,600 outlets.
In its notices, the private equity group has charged the directors of not performing their duty and keeping it in dark about Subhiksha’s financial status during that period.
“Zash Investments has sent some legal notice to directors of Subhiksha. The directors are framing an appropriate response to it,” a source close to the development said.
Notices have been sent to former LIC chairman S B Mathur, Carnegie Mellon University faculty member Kannan Srinivasan, independent consultant Rama Bijapurkar (all three of whom have resigned from Subhiksha’s board), ICICI Venture joint MD Rajeev Bakshi, ICICI Venture former MD Renuka Ramnath and former ICICI senior director Bala Deshpande.