Subhiksha, the retail chain outlet’s license in Maharashtra has been suspended over hygienic issues in it’s warehouse.
While Subhiksha will appeal to the Maharashtra High court and has blamed the rivals for manipulating the case:
As everyone is aware we follow a Lowest price strategy and offer 10% discount on all medicines and have been subject matter of boycotts and lots of harassment – at various times regulatory agencies have been instigated to act against us. The whole objective is to discredit our discounting and make it appear that we sell products at lower prices because we sell lower quality. The consumer base attests otherwise and also more importantly the inconvenient point for our detractors is that 80% of what we sell in our stores are products belonging to National brands sourced directly from them.
In its hurry to fix us, the process of law has been completely given the go by and no effort has been made even to make out a plausible case – Subhiksha which does not even have a packing license nor packs anything had been served with sale license suspension for offences committed by others. And the said Vendors who buy and pack grocery and sell them have had their licenses suspended without even a show cause notice issued to them – and these are the appeals being heard now as these suspensions had been earlier stayed though this fact was suppressed before the legislative Council on July 26. – source
ICIC Venture Capital owns 24% stake in Subhiksha and the company has been mulliing over IPO plans (to raise ~Rs.350 crore).