Discount chain operator Subhiksha is poised to go to court to avoid liquidation.
Kotak Mahindra Bank has filed a winding-up petition at the Madras High Court to appoint a provisional liquidator to the retailer. Subhiksha has filed a petition to suspend the order. The retailer admitted that it is in “temporary financial distress” but said the issues are not long term and related to the recession.
Kotak Mahindra Bank alleges Subhiksha has siphoned off “huge amounts” of money from the company to accounts of other floated companies.