New Delhi, Jul 25: Nearly a year after Cafe Coffee Day founder V.G. Siddhartha's death, the probe committee appointed by the Board of Coffee Day Enterprises Ltd (CDEL) has given a virtual clean chit to private equity investors and the Income Tax Department who were named in his last letter.
The investigation report noted that Siddhartha may have felt "aversive behavioural stimulus" due to persistent reminders from the PE investors and other lenders.
"However, such reminders and follow-ups by the PE investors and lenders are not something which are beyond normal industry practices and we believe that PE investors were acting as per accepted legal and business norms," said that report.
It further said that the investigators were not provided with any documentary evidence to show any "advertent or inadvertent harassment" from the Income Tax Department.
It however, said that the financial records suggest a serious liquidity crunch which may have arisen due to the attachment of Mindtree shares by the IT Department.
Further, the probe revealed that MACEL, a private firm of Siddhartha, owes Rs 2,693 crore to Coffee Day Enterprises, which the report says, "needs to be addressed".
The Cafe Coffee Day founder's body was fished out of the Netravathi river in Karnataka by a group of fishermen on July 31 last year, a day after he went missing.
His last note raised several questions about the role of investors, and tax officials.
He had written: "Tremendous pressure from other lenders lead to me succumbing to the situation. There was a lot of harassment from the previous DG Income Tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking possession of our Coffee Day shares, although the revised returns have been filed by us. This was very unfair and has led to a serious liquidity crunch."
The massive shock to the industry and the country also led the government to assure that tax officials would not harass businessmen and the situation would improve.
Speaking to reporters after the launch of the party manifesto for the zilla and taluk panchayat polls, BJP?State president Pralhad Joshi said Mattu was giving “communal colour” to terrorism. Chief Minister Siddaramaiah is yet to respond to the BJP’s?demand that he should clarify the State government’s stand on the issue.
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TERRORIST DNT HAVE ANY RELIGION....
Prahlad Joshi, a mastermind of all Hubli riots and Anjuman ground dispute talking about the statement given by Dinesh Amin a senior writer/Editor and CM's Media advisor is foolish allegation.
There are many examples of the Muslim youths arrests in the past are acquitted by the court in our state and through out India. Recently Mumbai Train blast is another example for this. Mr. Amin is right on his statement and Joshi claim must be ignored.
BJP is always trying to find pebbles in sour milk.
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