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
February 19,2020

Bengaluru, Feb 19: Congress MLA UT Khader on Wednesday slammed the Central government over the enactment of the Citizenship (Amendment) Act and said it violates the Constitution.

"The new citizenship amendment bill is unconstitutional. The citizenship cannot be given on cast and creed basis. Because of these things we are fighting against it," he said while speaking to media in Bengaluru.

Opposition along with several non-BJP state governments, including Madhya Pradesh, West Bengal, Kerala, Punjab and Rajasthan have refused to implement the Citizenship Amendment Act (CAA) and the proposed NRC in their respective states.

The CAA grants citizenship to Hindu, Sikh, Jain, Parsi, Buddhist and Christian refugees from Pakistan, Afghanistan and Bangladesh, who came to India on or before December 31, 2014.

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News Network
April 14,2020

Bengaluru, Apr 14: The Congress in Karnataka on Tuesday welcomed the extention of the COVID-19 lockdown till May 3, though it flayed Prime Minister Narendra Modi for not announcing any programme to support the slowed down economy.

Reacting to the lockdown extension, Congress president D K Shivakumar said it was much needed to control the virus but expressed his displeasure for not offering any relief measure to uplift the economy which is witnessing slump.

"We had expectation that some package would be offered but that was not done. The manufacturing sector, service sector, agriculture sector and even the medical sector was looking for some relief but that was not the talking point of the Prime Minister," Shivakumar told reporters.

However, he maintained that the party would cooperate with the Centre in its fight against COVID-19.

Leader of the Opposition Siddaramaiah said he was "disappointed" that there was no programme announced to improve the economy, which is at the lowest level in 30 years.

"The economy has collapsed. Never ever in 30 years it had witnessed such a downfall. Industries are closing down.

Agriculture in bad shape. poeple have no money. Villages are in distress," the former chief minister said.

He opined that Modi should have make some announcement with regard to economic programmes and assistance to the weaker section.

"Labourers today are on the streets. Their programmes do not touch them. People had lots of expectations which are now meaningless," Siddaramaiah said.

However, he underlined that he does not oppose the lockdown and appealed to the people to support it wholeheartedly.

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News Network
February 3,2020

New Delhi, Feb 3: Congress leader BK Hariprasad on Monday condemned BJP MP Anantkumar Hegde's remark on Mahatma Gandhi and termed him as "son" of Nathuram Godse, the assassin of the freedom fighter.

"Only sons of Nathuram Godse can make such comments on Mahatma Gandhi," Hariprasad said.

Hedge had attacked Mahatma Gandhi by calling the freedom struggle led by him a "drama" and also questioned as to how "such people" come to be called 'Mahatma' in India.

"None of these so-called leaders were beaten up by the cops even once. Their independence movement was one big drama. It was staged by these leaders with the approval of the British. It was not a genuine fight. It was an adjustment freedom struggle," he had said.

The Trinamool Congress also lent its support to Congress as its leader Saugata Roy said people like Anant Hegde cause shame to the nation. "We are a supporter of Gandhi and they (BJP) are Nathuram Godse supporters. People of this country should see how BJP MPs are as they insult father of the nation," he added.

BJP leaders too found it difficult to defend Hegde on the controversial remarks.

Senior leader Jagdambika pal was cautious in his defence and said, "The whole world knows about Gandhi and it may be his personal opinion."

Whereas senior BJP leaders avoid commenting on Hegde, Union Minister Ashwani Choubey said that Hegde should not have made the comment and added that Gandhi is a well-respected figure in the nation.

Another BJP MP from Haryana Sanjay Bhatia also tried to shy away from making a direct comment and instead said," Congress did not implement what Gandhi preached. It is Prime Minister Narendra Modi who implemented Gandhi's teachings in letter and spirit."

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