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.
Comments
This attack on Karnataka by BJP. Why did not they raid houses of BJP leaders who have become rich after BJP came to power. Reddy brothers are roaming freely and had lavesh wedding of their daughter. IT department are sleeping
Timing is good!!. Each one repeats same in cycle and then they may stop doing corruption. But Indian political population is a strange one and may start bribing each other! Congress also did all kind of tactics! Timing of investigation of corrupt DMK - daughter!
How can congress explain recovery of 10.5 crores cash from the minister's residence?Is it not embarrassing for congress leaders who called the raid witch - hunt?
What does BJP say about corruption of their own leaders. How many raids were given on the corrupt leaders of BJP. There are not hundred but thousand cases of corruption of BJP leaders. Recently in Chhatishgarh, one minister Brijmohan Aggarwal has encroached the government land. A few days ago Chief of Kerala BJP was caught for taking bribe of Rs 6 crores. After demonetization maximum black money was recovered from these BJP leaders. Before demonetization, dubious land deals were executed with their black money as they know fully that demonetization was to be declared by their party.. Black money was recovered from the BJP leader in Punjab as well from Madhya Pradesh leader. Who is funding Amit Shah who is roaming using chartered planes from one place t0 another place. What were the sources of funds during elections either for the Centre or for the states. Admitted Congress is corrupt but BJP is the most corrupt party in India.Wherefrom they got 15 crores to purchase MLAs.
All corrupt politicians are the feathers of the same bird. All are corrupt whether in the ruling party or in the opposition. Some of them are pro industrial and getting unaccountable money to be spent on their rival parties to let down. If any leader is corrupt and facing trial in the court, they either try to purchase the sitting judges or transfer them on the name of promotion. These tactics have been used by Modi Government in Gujarat to have clean chits in Godhara riots.The enquiry commission was appointed to enquire about who were behind the killings of innocent Sikhs, one Mishra was purchased by the Congress party and he was taken in Rajya Sabha.These commission heads are corrupt and working as per directions of the ruling party. How one can get justice. In India justice is denied to poor, downtrodden and minorities. These political parties have cleverly expert to change the facts into lies. They are expert to purchase and threaten others who are disagreed with them
How can there be black money? Demonetisation was supposed to eradicate it.
He's questioning the time, he's not questioning all that money that's been
seized!
"Mr. Shivakumar's mother hit out at Mr. Siddaramaiah accusing him of not
protecting her son."... ideal mother
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