Zen Supreme resurfaces, declares itself insolvent

Chennai channel partners and distributors are extremely unhappy these days
and the cause is Zen Supreme. As reported in The DQ Week in May 2008, Zen had
absconded from Chennai, without paying them after getting material. Considered
the biggest scam to ever happen in the Chennai market, Zen Supreme had allegedly
bought material from 44 people in the channel industry. The list included 18
distributors (both national and regional) and 26 partners. It was said that Zen
Supreme owed around Rs 2.5 crore to these people. As of result of his absconding
the affected partners had filed a case against the proprietor Kalyana Sundaran
(prime accused) his wife Hemalatha and his brother Balasubramanium and the case
was transferred to Crime Branch Department, Chennai. As the police were scouting
for the accused, the 44 people who had lost money have now been served a legal
notice by the Madras High Court stating that all the three accused Kalyana
Sundaram (Insolvency Petition No 75), Hemalatha (IP No 77) and Balasubramanium
(IP No 76) have been adjudicated insolvent on their petition by an order of the
High Court, Madras dated July 10, 2008. The petition also stated that consequent
upon the order of adjudication all the insolvents assets wherever they may be
situated vest in the Official Assignee, High Court Madras.

Since the accused has gone for insolvency, the case has turned into a civil
case from criminal. However, dealers claim that the police can still arrest the
accused in cheating case. The High Court has scheduled the next hearing for Dec
29. “In the next hearing we might come to know who the leading partner on
Ritchie Street is, who owes money to Zen Supreme and exactly what happened, as
the court has also asked for an explanation from the defaulter pointed out by
the insolvent,” a dealer informed.