JUST IN:
Body of VG Siddhartha, founder of Cafe Coffee Day (CCD) and son-in-law of former CM SM Krishna, has been found on the banks of Netravati River near Mangaluru.
Search operations for V G Siddhartha, who was last seen at a bridge near the Nethravati river in Mangaluru on July 29, have been suspended for now and will resume tomorrow, according to aCNN News 18 report.
Axis Bank Tuesday said the Café Coffee Day group, whose founder chairman VG Siddhartha has been missing since Monday night, has repaid some of the loans after he sold his over 20 percent stake in software firm Mindtree to Larsen & Toubro recently. Top bank officials, however, declined to specify to PTI what is the exposure that third largest private sector lender has to the account.
Siddhartha's family gave us letter, so should be genuine: Mangaluru Police Commissioner
Mangaluru’s Police Commissioner saidthat he had visited Siddhartha's family yesterday to enquire about the missing coffee shop tycoon. When asked about the letter purportedly written by Siddhartha to the Board of Directors of Coffee Day Enterprises, the commissioner told reporters "Siddhartha's family gave us the letter, so it has to be genuine." He also said that a team in Bengaluru is carrying out further inquiries.
People from all walks of life made a beeline to former Chief Minister and BJP leader S M Krishna's residence to express solidarity with the family, which is in a state of shock after his son-in-law, Cafe Coffee Day founder V G Siddhartha, went missing. According to PTI, senior politicians such as former prime minister H D Deve Gowda, former opposition leader in the Lok Sabha Mallikarjun Kharge, chief minister B S Yediyurappa , former chief ministers H D Kumaraswamy and Siddaramaiah visited Krishna's residence, 'Shambhavi'.
"The trouble is:Private Equity is a very tempting option, but there are so many things that are involved in the agreement that it actually becomes debt,"said Shankar Sharma toCNBC-TV 18.Siddhartha's letter, written before his disappearance, spoke of aprivate equity partner who forcedhim to buy back shares and how he faced trouble from the income tax department.
"We cannot have a heavy-handed approach to corporate debt and loan defaults," said Shankar Sharma to CNBC-TV 18, in light of VG Siddhartha's disappearance. Siddhartha's letter, written before his disappearance, spoke of aprivate equity partner who forcedhim to buy back shares and trouble from income tax that blocked him from sellingMindtreeshares amid the takeover battle that ensued between Mindtree andL&T.
According to aPTIreport, teams of National Disaster Response Force, Coast Guard, Home Guard, fire services and coastal policescoured the waters under a bridge across the swollenNethravathiriver, where VG Siddhartha was reportedly last seen. Local fisherman, along with their boats, have also joined in the frantic search operations. Police said they are also questioning the car driver.
Karnataka Bank has stated it has no exposure to Coffee Day Enterprises, despite the company's global unit having an outstanding loan of Rs 152 crore. "This is to clarify that our bank does not have any exposure to Coffee Day Enterprises Ltd, an entity listed on BSE and National Stock Exchange of India Ltd," Karnataka Bank said."However, Coffee Day Global, one of the unlisted group companiesis enjoying credit facilities with the present outstanding of Rs 152.48 crore,"
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Tax officials said that in September 2017 during a series of search and post-search investigations at various premises, Siddhartha had “admitted” to having undisclosed income of Rs 346.46 crore and Rs 118.02 crore that he andCoffee Day Enterprises, one of the many companies company that he founded, had hidden away from reporting to authorities. about the Income Tax department's probe.
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"The Board is confident that the professional management of the company and each of the entities in the Coffee Day Group and their respective leadership team, will ensure continuity of all business operations consistent with past behaviour," the board of Coffee Day Enterprisessaid in a statement following an emergency meeting following the disappearance of founder and owner VG Siddhartha.
Key highlights of VG Siddhartha's journey till date
I-T department questions authenticity of VG Siddhartha's letter
The Income Tax department has issued a document which questions the authenticityof VG Siddhartha's letter. It also gives a full account of the probe carried out against him and Coffee Day Enterprises.
Letter written by VG Siddhartha, dated July 27, before his disappearance
Press release from emergency board meeting of Coffee Day Enterprises
Sources who spoke toCNBC-TV 18 said that the Tax Department attachedMindtreeshares worth Rs 3,000 crore held byVG Siddharthawithout notice. The report by the publicationfurther said thatVG Siddhartha went back and forth with the tax departmentfor almost six weeks for a 'potential' tax demand of Rs 625 crore.
The Income Tax department deny the allegations made by missing Cafe Coffee Day founderVG Siddhartha in a letter he wrote on July 27, according to sources who spoke to CNN News 18.The report further stated that the department followed the due process of law while carrying out a probe into his operations.
"I am sure that many kinds of companies face investigation from the Income Tax department, and pressure from private equity funds. I think many things came at the same time, which he may not have been able to bear," said Kiran Mazumdar Shaw, in an interview to CNN-News 18.
TheBSE is seeking clarification from Cafe Coffee Day Enterprises on theletterwritten by VGSiddhartha, reports Moneycontrol's Swathi Moorthy.
5 key points on VG Siddhartha's Coffee Day Enterprises:
In addition to its coffee business, Coffee Day Enterprises operates other select businesses, namely, development of IT- ITES technology parks, logistics, financial services, hospitality and ITITES. Read more
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The Indian Coast Guard onJuly 30said it has deployed a ship off the old Mangalore port to search for V G Siddhartha, the founder of the Café Coffee Day.The Dakshina Kannada police have launched a search near the Nethravati River. Mangaluru Police Commissioner Sandeep Patil said that the search operation is using a boat service and the help of local fishermen.
'I have failed as an entrepreneur,' says Cafe Coffee Day owner in letter to staff
"I sincerely request each of you to be strong and to continue running these businesses with a new management," Siddhartha said in a letter dated July 27. Read more for the complete letter.
Which investor’s ‘pressure’ was Coffee Day owner referring to?
In his letter to shareholders, VG Siddhartha mentioned tremendous pressure from one of the private equity partners and lenders had led to liquidity crunch and made him “succumb to the situation”. TheCCD founder has been missing since July 29 evening. Read more.
Who is VG Siddhartha?
Before he took the coffee plunge, VG Siddhartha was an investment banker and trader. Born in Karnataka's Chikkamagaluru, he started his career as a management trainee trading in Indian stock market at JM Financial under the tutelage of Mahendra Kampani in 1983, after completing his masters’ degree from Mangalore University. In 1992, he launched Amalgamated Bean Company Trading (now known as Coffee Day Global), an integrated coffee business that ranges from procuring, processing and roasting coffee beans to retailing coffee products. Know more.
VG Siddhartha missing: Congress' DK Shivakumar says the CCD founder called on July 28
Congress leader DK Shivakumar said he got a call from missing Cafe Coffee Day founder VG Siddhartha on July 28. Siddhartha asked if they could meet, Shivakumar said in a tweet.... Read More
