Varanasi fears polarisation as Kejriwal hits campaign trail

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.

Washington, Feb 12: US President Donald Trump said on Tuesday he would sign a trade deal with Prime Minister Narendra Modi if 'it was the right one'.

The two countries have been trying to reach a limited trade pact with lower tariffs, but talks have run into problems over issues with data privacy and e-commerce controls.

Trump further said that he is looking forward to his visit to India later this month where millions of people would welcome him. "He (Modi) is a great gentleman and I look forward to going to India. So, we'll be going at the end of the month," Trump told reporters in his Oval Office, a day after the White House announced dates of his anticipated India trip.

Responding to a question, the president indicated that he is willing to sign a trade deal with India if it is the right one. "They (Indians) want to do something and we'll see... if we can make the right deal, (we) will do it," said Trump, a fortnight ahead of his visit to the country as the 45th US president.

India's new Ambassador to the US, Taranjit Singh Sandhu told PTI that Trump's forthcoming visit is a "reflection of the strong personal rapport" between Trump and Modi. "It also demonstrates their strong desire to take the relationship to new heights," said Sandhu, who had presented his credentials to Trump in Oval Office last week.

Over the last three years, Trump and Modi have developed a personal friendship and in 2019, the duo met four times including their joint address before a strong 50,000 crowd of Indian Americans in Houston.

This year, they have spoken over the phone on two occasions, including the one over the weekend. "Just spoke with Prime Minister Modi," Trump told reporters on Tuesday in response to a question on his India visit.

Excited to travel to India later this month, said Trump referring to his conversation with Modi during which the prime minister apparently told him about the hundreds and thousands of Indians who would be there to welcome him in Ahmedabad.

Trump jokingly told reporters that now he will "not feel good" about the size of the crowd that he addresses in the US which is usually between 40,000 to 50,000. "He (Modi) said we will have millions and millions of people. My only problem is that last night we probably had 40 or 50,000 people... I'm not going to feel so good... There will be five to seven million people just from the airport to the new stadium (in Ahmedabad)," Trump said.

"And you know (it) is the largest stadium in the world. He's (Modi) building it now. It's almost complete and it's the largest in the world," Trump said. The two leaders are expected to joint address a massive public rally at the newly build Motera Stadium in Ahmedabad.

Being built at an estimated cost of USD 100 million, the Motera Stadium with a seating capacity of 100,000 spectators will be the world's largest cricket stadium overtaking the Melbourne Cricket Ground in Australia.

New Delhi, Apr 20: The Centre on Monday said that India's COVID-19 doubling rate has improved to 7.5 days from 3.4 days before the lockdown was enforced to check the spread of the coronavirus.

"India's doubling rate before the lockdown was 3.4 days. It has now improved to 7.5 days. As per data on April 19, in 18 States, the rate is better than the national average," said Lav Agarwal, Joint Secretary, Union Health and Family Welfare Ministry, at a daily briefing here.

"The number of districts where no case has been reported in the last 14 days has increased to 59 in 23 States and UTs. Goa is now COVID-19 free," he said.

India's total number of coronavirus positive cases has risen to 17,656 including 14,255 active cases, 2,842 cured/discharged/migrated and 559 deaths, according to the Ministry of Health and Family Welfare.

"Mahe in Puducherry, Kodagu in Karnataka and Pauri Garhwal in Uttarakhand have not reported any COVID-19 case in last 28 days," said Agarwal.

Let us take a look at the top developments of the day regarding the COVID-19 situation in the country:

1. There are 23 active COVID-19 cases in Himachal Pradesh. 11 patients have recovered, four migrated out of the State and one person succumbed to the disease. A total of 2,902 people have been tested for COVID-19 so far, said Himachal Pradesh Health Department.

2. The number of COVID-19 cases has risen to 408 in Karnataka including 16 deaths and 112 discharges, according to the state Health Department. 18 new cases have been reported in the last 24 hours.

3. "14 new COVID-19 cases reported, all from Kashmir. The total number of cases now stands at 368, Jammu-55 and Kashmir-313," said Rohit Kansal, Principal Secretary, Planning, Union Territory of Jammu and Kashmir administration.

4. According to Punya Salila Srivastava, Joint Secretary, Ministry of Home Affairs, the Ministry wrote to Kerala government yesterday, expressing concerns over modified guidelines regarding lockdown. "Kerala has allowed some activities that violate the Ministry's instructions issued under the Disaster Management Act," she said.

5. Five more police personnel from Chandni Mahal police station have tested positive for COVID-19. Till now eight personnel from the police station have tested positive for the virus, according to the Delhi Police.

6. Total 57 new COVID19 cases and two deaths have been reported today. Cumulative positive cases now stand at 1,535, and toll at 25, said Rajasthan's Health Department.

7. Indian Council of Medical Research (ICMR) has said that RTPCR kits are US FDA approved and have good standards and these should be stored under 20-degree temperature for better result.

8. "A total of 283 more COVID-19 cases have been reported in Maharashtra, taking cumulative positive cases in the State to 4,483, as of 11 am today. Of the 283 new cases, Mumbai has recorded 187," said Rajesh Tope, Maharashtra Health Minister.

9. One new COVID-19 positive case was reported today in Bokaro, taking the total number of cases in the State to 42, said Nitin Madan Kulkarni, Jharkhand's Health Secretary.
10. According to Punjab's Health Department, only one person has been tested positive for COVID-19 in the State today. The person is a contact of the COVID-19 patient.

11. "There is only one red zone district in Chhattisgarh. For the last 72 hours, no COVID-19 positive patient has been found even in that red zone district. I am hoping that whole of Chhattisgarh will be green zone soon," said Chief Minister Bhupesh Baghel.

12. Six new COVID-19 cases were reported in Kerala, all from Kannur, of which 5 have foreign travel history. Total cases in the State at 408, including 114 active cases, said Kerala Chief Minister Pinarayi Vijayan.

Meanwhile, the Centre has constituted six Inter-Ministerial Central Teams (IMCTs), two each for West Bengal and Maharashtra and one each for Madhya Pradesh and Rajasthan to make an on-spot assessment of the situation and issue necessary directions to the state authorities for their redressal and submit a report to the Central government in the larger interest of the general public.