ED notice to B M Farookh over FEMA violation

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.

Mangaluru, Jun 3: A banner that read "Veer Savarkar Flyover Pumpwell" surfaced on the sidewall of the Pumpwell flyover in Mangaluru on Tuesday night.

It is suspected that activists of Bajrang Dal put up the controversial banner. Though it was removed later, it sparked debates on social media and photos of it went viral.

The development comes amid the controversy over the naming of a flyover at Yelahanka in Bengaluru after Savarkar.

A Hindutva ideologue, Savarkar has tendered apology to British imperialists and pledged to support them following his arrest during India’s freedom movement.

Mangalore, Jun 3: One man was arrested by the Crime Branch of city police from Mangalore for allegedly having links with gangster Ravi Pujari, Joint Commissioner of Police (Crime) Sandeep Patil said on Wednesday.

According to the police, the man identified as Ghulam has been sent to 10-day police custody.

"During the investigation of a case related to Ravi Pujari, it was found that one Ghulam is a close associate of Pujari and had helped him in extortion and other illegal activity. Ghulam was arrested from Mangalore. He was produced before a court and sent to 10-day police custody," Patil said.

The senior police officer said that further investigation is on in the matter.

Pujari, who was wanted in several cases including ones related to heinous crimes like murder and extortion, was brought to Bengaluru earlier this year from Senegal. He had reportedly gone underground two decades ago and had allegedly been carrying out illegal activities from abroad.