Bengaluru, Jul 26: A year-long probe by Coffee Day Enterprises Ltd (CDEL) has found that its late founder V G Siddhartha routed Rs 2,693 crore out of the company to Mysore Amalgamated Coffee Estates Ltd (MACEL), another privately-owned entity of him.
The MACEL owes Rs 3,535 crore to subsidiaries of Coffee Day Enterprises as of July 31, 2019 of which only Rs 842 crore was accounted.
"Therefore, a sum of Rs 2,693 crore is the incremental outstanding that needs to be addressed," said the report of an investigation headed by Ashok Kumar Malhotra, a retired DIG of Central Bureau of Investigation (CBI) and assisted by law firm Agastya Agastya Legal.
Siddhartha was found dead in early August 2019, and many suspected that he had committed suicide.
Steps are being taken by subsidiaries of CDEL for recovery of dues from MACEL, the company said.
"The board authorised the Chairman to appoint an ex-judge of the Supreme Court or the High Court, or any other person of eminence, to suggest and oversee actions for recovery of the dues from MACEL and to help on any other associated matters," it said in regulatory filings at stock exchanges late on Friday.
The probe further gives clean chits to the Income Tax Department and the private equity firms who Siddhartha in his parting letter had alleged of harassment.
"We have not been provided with any documentary evidence to draw an inference that there may have been any advertent or inadvertent harassment from the Income Tax Department," said the probe report.
The probe also highlighted severe liquidity crunch at CDEL in the build-up to Siddhartha's death.
A committee supported by senior professionals was formed to protect the interest of all stakeholders. CDEL said the debt levels which were about Rs 7,200 crore on March 31, 2019 have been brought down significantly by Rs 4,000 crore. The present debt of the group is around Rs 3,200 crore.
"The disinvestment process in the group continues and we are confident to have effective solution to all stakeholders," it said.
Comments
No words to speak after hearing the sad demise my favorate Mr. P.C.M. Kunhi. I met him last year in the month of April 2015 on my vacation in a programme. He spoke to me and asked about my wishes. Great Educationist, Academist, Philanthropist and wise man.
Helping hand for poor. I was with him in Yenepoya Dental College at Zulekha Complex, Bunder.
May Allah bestow him Jannathul Firdouse and Give him a cool and heavenly life in Barzak.
Aameen Ya Rabbul Aalameen..
Innaa Lillahi Wa Innaa llaihi Raajivoon. May the departed soul rest in peace. May Allah accept all his good deeds and forgive the sins. May Allah bless him with Jannah. May Allah give sabr ( patience ) to the grieved family to bear the loss of their dear one.
Heartfelt condolences.
our deepest condolences to the family members of pc kunhi,
we pray with almighty Allah give patience and strength to the nearest and dearest of all his family members, this is a great loss to all of us, once again we pray for the magfirah of departed soul of kind and soft man. Ameen
to Allah we belong and to Him is our return
our heartfelt condolences to the family members of pc kunhi . may Allah give patience, strength to all his nearest and dearest, the great loss of our family, my deepest condolence to all of them,
we once again pray with almighty for the maghfirah of departed soul of kind and soft man, ameen
Please accept our deepest condolences, \to Allah we belong and to Him is our return\""
Inna Lillahi wa Inna Ilahi Rajiwoon. Very sad and shocking news. We are with the aggrieved family
Inna Lillahi wa Inna Ilaihi Rajioon. May Allah grant him jannah. Indeed he was a great motivator. Hope his son Hashir will fulfill dreams of his father.
A great loss to the community and society. He was a role model for many. Despite his ill health he continued to fulfill his responsibilities.
Inna lillahi wa inna ilaihi raajioun. May Almighty Allah bestow with Jannathul Firdouse. A big loss to entire coastal muslims as well as for Islamic Academy of Education (Yenepoya University).
INNA LILLAHI WA INNA ILAIHI RAAJIOON.
The big loss for Muslim Community. He was the Correspondent of Badria College for decades.
May Almighty ALLAH bless him with Jannathul Firdous.
Inna Lillahi Wa inna ilaahi rajioon
The Great Academician, Educationist, Administrator,Philanthropist. the really big loss for the society, we wish him to take rebirth.
RIP, condolences to the family and loved ones.
RIP sir
wanaqalat shaqqana
unbelievable...really really hard to believe
Unbearable loss to the society “RIP”
Inna Lillahi Va Inna Ilaihi Raajivoon...
Inna Lillahi wa Inna Ilaihi Rajihoon. Allahummghfirlahoo warhamhoo whafu anhoo Yaa Rabbal Aalameen. May Almighty Allah bestow him with the Janathul Firdouse. ameen.
Inna lillahi wa inna ilayhi raji'un
inna lillahi wa inna ilaihi raajioun. we pray almighty allah to bless late.prof.p.c.m.kunhi, with his jannathul firdouse, aameen. our heartfelt condolences to the family members of prof.p.c.m.kunhi. may almighty allah give patience, strength and forbearance to all his family members to bear the brunt of bereavement. a soft spoken, well qualified civil engineer, educationist., academician and also an entrepreneur with humility. a very good footballer and a keen sportsman in his heydays. prof.p.c.m.kunhi, is closely known to us for the past 40+years., since his teaching days in krec-surathkal (now-nitk). particularly mangalore muslim community and others have lost a decent gentleman with high esteem. we once again pray with almighty allah for the maghfirah of the departed soul of this noble gentleman, aameen.
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