Democracy murdered in Maharashtra: Rahul Gandhi

Mar 16: An investigation into Coffee Day Enterprises Ltd., initiated by its board after the death of founder V.G. Siddhartha, is likely to conclude that at least Rs 2,000 crore is missing from its accounts, according to people familiar with the matter.

The months-long probe following the suicide of Siddhartha in July examined the financial transactions of India’s largest coffee chain and its dealings with dozens of private companies owned by the entrepreneur. The draft report, running more than a hundred pages, points to thousands of rupees that have gone missing, said the people, asking not to be named because the details aren’t public. It also details hundreds of transactions between the founder’s listed and personal businesses that were not conducted at arm’s length, they said.

Though the report is in its final stages, the precise details could change before its release, expected as early as this week, the people said. The missing funds could total more than Rs 2500 crore, one person said.

“The investigation report is still a work in progress, and not finalized,” a spokesman for the company said. “The board of directors and the company are unaware of its content at this point of time. Hence it would be premature to speculate on the investigation findings.”

The priority for management and Siddhartha’s family “is to keep the business running in a challenging environment and meet all stakeholder commitments, including 30,000 jobs associated with the group,” the spokesman added.

The disappearance of the 59-year-old founder last year stunned India’s business community. He had last been seen telling his driver he was going for an evening walk along a bridge in southern India; his body was found by local fishermen two days later. A letter delivered to Coffee Day’s board and employees, which appeared to be signed by Siddhartha, described massive debts and complained of pressure from lenders and tax authorities. It claimed he bore sole responsibility for the company’s financial transactions.

The probe began about a month later when the company brought in Ashok Kumar Malhotra, a retired senior official from India’s federal enforcement agency, to investigate. A senior lawyer practicing in India’s top court is assisting, the company said in a regulatory filing at the time.

The publicly traded Coffee Day was supposed to be India’s answer to Starbucks Corp. More than 1,500 of its Café Coffee Day outlets blanketed cities and highways, with affordable options for the country’s aspiring middle classes. The chain’s tagline: “A lot can happen over coffee.”

But the empire has been battered since the founder’s death. Its shares plummeted about 90% and its market value dropped to about $80 million. Trading was suspended in February.

India’s regulators are tracking the situation and may use the company’s final report as part of a deeper dive into its internal affairs, the people said. Coffee Day showed about Rs 2400 crore in cash and cash equivalents on its balance sheet as of March 2019, the most recent figures the company has issued.

After the death of Siddhartha however, the company faced a severe liquidity crunch and had “zero cash in the bank,” according to one of the people. It struggled with day-to-day expenses and paying salaries has been a strain, the person said.

The draft report details personal guarantees by Siddhartha for loans taken by Coffee Day, and his unsecured loans at high interest rates from local money lenders, the people said. It also probes Coffee Day’s defaults to coffee growers and other vendors, they said.

A related issue is that coffee estates owned by Siddhartha and several employees had been used as collateral for bank loans. The report found that valuations for properties were inflated to get the loans, one person said.

Investigators have examined several theories about what happened to the company’s money, including whether Coffee Day was manipulating its finances to show cash and profit and whether Siddhartha was taking cash out of the listed company to pay off a large investor to whom he had guaranteed a return, the person said. From the filings of his listed and private companies, the entrepreneur’s loans had totaled more than Rs 10,000 crore, and he had been squeezed by borrowing to repay interest on earlier loans, the person said.

In the letter purportedly from Siddhartha, the entrepreneur said he had tried his best but failed as an entrepreneur. “I am solely responsible for all mistakes,” the letter read. “Every financial transaction is my responsibility. My team, auditors and senior management are totally unaware of all my transactions. The law should hold me and only me accountable, as I have withheld this information from everybody including my family.”

As the report nears release, Coffee Day is finalizing a deal with Blackstone Group Inc. for real estate assets. A large tranche of the payment is due in about a week, one person said.

Coffee Day said it is working to reduce its debt load by divesting non-core enterprises.

“The aim is to save employment and preserve this iconic Indian brand,” the spokesman said.

New Delhi, May 26: The in-fighting among the residents of housing societies over feeding of stray dogs is nowhere near ending, with yet another attack on a pregnant Russian woman again in the national capital region this time in Noida.

The Russian woman residing in a condominium in Noida's Sector 71 was allegedly attacked by two men for feeding foundling canines inside the complex.

"We have initiated an inquiry and a case has been registered against the men for voluntarily causing hurt and criminal intimidation," Amit Kumar Singh, Station House Officer of Phase 3 police station told IANS.

The police said that the victim is married to an Indian man and they live in that society.

The issue was raked up on social media by one of the residents of the society. Her post had even solicited a response and help from the Noida Police Commissioner.

Kaveri Rana Bharadwaj wrote, "Mob led by Vikas Sharma, and Mr. Chauhan beat up a pregnant woman in Jagriti Apartment, Sector 71 Noida. Request you to immediately arrest these men and provide security to the scared woman!"

When contacted, a member of the Resident Welfare Association (RWA) of the society said that the allegations levied by her are false and that he, along with a handful of other people, had only asked her not to feed the dogs.

Vikas Sharma divulged, "The woman was called at the society gate by the members of the RWA. When she was asked not to feed the street dogs, she became aggressive, started fighting with the residents of the society and even pushed a 70-year-old woman. The complaint that she registered against us is false. We did not even touch her."

He added that there are 70-80 street dogs in the society who have lately become extremely aggressive. "The lady was asked not to feed them as people feared stepping out of their houses and getting bitten."

In another incident on Tuesday, a Greater Noida man beat up a Chinese woman for allegedly fostering a stray dog which bit his canine.

Greater Noida District Commissioner of Police Rajesh Kumar Singh told IANS that the man named Amar Pratap Singh of ATS Paradiso misbehaved with the woman after his dog was bit by another dog who she used to feed every day.

The incident happened in the wee hours of the day when the accused took his dog out for a walk. "After his dog was bitten, in a fit of rage, he misbehaved with the Chinese woman." A Non-Cognizable Report (NCR) has been registered and no arrests have been made so far, the police said.

Mar 11: Thirteen of the 22 rebel MLAs in Madhya Pradesh have given an assurance that "they are not leaving the Congress", senior party leader Digvijaya Singh said on Thursday while expressing confidence that the Kamal Nath-led government in the state will win a floor test.

"We are not keeping quiet. We are not sleeping," Singh told PTI, a day after Congress leader from the state Jyotiraditya Scindia quit the Congress and 22 MLAs submitted their resignations from the assembly in Madhya Pradesh.

Scindia was offered the post of Madhya Pradesh deputy chief minister but wanted his nominee, Singh said. However, Kamal Nath refused to accept a "chela", he said.

Scindia, he said, could have been a Congress nominee to the Rajya Sabha but "only Modi-Shah" can give a Cabinet post to the "over-ambitious" leader.