Late coffee baron Siddhartha routed Rs 2,693 crore from Coffee Day to another firm: probe

News Network
July 26, 2020

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.

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News Network
July 16,2020

Bengaluru, Jul 16: Former Karnataka Chief Minister Siddaramaiah on Thursday hit out at state Health Minister B Sriramulu for stating that "only God can save Karnataka" from COVID-19 and asked him to resign from his post.

Speaking to media here in Bengaluru, Siddaramaiah said, "The government cannot say that we are helpless. Why is the government in power? You have power and you have money. It is your primary duty to serve the citizens of the state."

On being asked about Karnataka Health Minister's statement, the Congress leader said: "Let him resign and go out. God will help you only if you will put all your efforts."

Meanwhile, President of the Karnataka Pradesh Congress Committee DK Shivakumar tweeted "Karnataka's Health Minister saying 'Only God can save Karnataka' reflects poorly on @BSYBJP govt's ability to handle the Covid crisis. Why do we need such a government if they cannot tackle the pandemic?"

Sriramulu had said on Wednesday that either people should inculcate awareness or only God can save them from COVID-19.

"Who can save us at this time? It's either God or people should inculcate awareness in them. Congress leaders are involved in political mudslinging at this time. This is not fine and it will not help them in any way," the Minister had said.

"It is a crucial time, in the interest of the general public. I request all the Congress leaders not to indulge in loose talk regarding the issue, it leads to more panic situation among the general public. We are ready to adhere to any punishment if we did any wrong thing," he had added.

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News Network
June 30,2020

Bengaluru, Jun 30: The judicial, non-judicial and administrative functions of the Karnataka High Court has been suspended for Tuesday, for sanitisation of the entire court complex due to "unavoidable circumstances".

The High Court in a notice informed about the decision on Monday.

"It is hereby notified to the litigant public/learned advocates/party-in-person/officers and staff of the High Court of Karnataka, Principal Bench, Bengaluru that, the judicial/non-judicial/administrative functions of the High Court is hereby suspended for one day -- on June 30, 2020, for sanitisation of entire High Court complex, due to unavoidable circumstances," the notice read.

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News Network
January 24,2020

Bengaluru, Jan 24: On the last day of his four-day trip to Davos, Switzerland, to attend the World Economic Forum, chief minister BS Yediyurappa urged the global business community to invest in cities other than Bengaluru in the state.

On Thursday, while extending an invitation to entrepreneurs to participate in the Global Investors Meet in November in Bengaluru, Yediyurappa highlighted the “conducive investment climate” in the state vis-a-vis others by pointing to its 7% growth rate which is much higher than the national average of below 5%.

He also pointed to the state’s rich history and the fact that it is home to a number of desi MNCs such as Infosys, Biocon Wipro and Dynamatics. “At the same time, the state has one of the lowest unemployment rates compared to the national average,” Yediyurappa said.

In his address to heads of businesses, industries minister Jagadish Shettar also urged investors to consider Tier 2 and 3 cities for investment. “Land banks have been created in Tier 2 and 3 cities and regional connectivity has improved. Let us strive to place Karnataka on a highgrowth path,” Shettar said.

Lending a “helping hand”, Union minister Piyush Goyal, in his address, appealed to the community to invest in Karnataka, which “has a robust and congenial industrial atmosphere”, but also urged them to spread “tentacles” to all parts of the country.

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