- Siddharth, son-in-law of former Karnataka CM SM Krishna, went missing on Monday near Netravati River
- Siddharth’s alleged letter to the company was revealed on July 27, referring to pressure from lenders and private equity partners.
- It was also written – Attachment of shares by former DG of Income Tax Department caused cash crisis
- Case of suicide, but nothing can be said till the investigation is completed – Police
Mangaluru VG Siddhartha, the founder of the country’s largest coffee chain Cafe Coffee Day (CCD), was cremated in the ancestral village Chetanahali in Chikmagalur district. His elder son Amartya lit him. During this time hundreds of people were present. The last rites were performed according to the traditions of the Vokkaliga community. Former Karnataka Chief Minister SM Krishna and his wife Prema also arrived to pay tribute to the son-in-law.
The body of Siddharth (60) was found by the Netravati river in Mangalore on Wednesday morning. After his disappearance on Monday night, 200 people including 25 swimmers were engaged in search operation. During this time the help of Coast Guard ships ICGS Ambassador and ACV (H-198) was also taken. On the other hand, the police say that the case seems to be purely suicide but nothing can be said till the investigation is completed.
On July 27, an alleged letter from Siddharth came out, in which he mentioned the pressure from equity partners and lenders. He wrote that I failed as a businessman. In the police interrogation, the driver told that Siddharth had come to roam the bridge located in Ulal city. There he stopped the car and got out on foot. I was waiting for them. He did not return for 90 minutes and informed the police.
Businessmen should not lose their self-esteem: Mahindra
Anand Mahindra, Chairman of Mahindra & Mahindra, has said about Siddharth that I do not know him and also do not know about his financial circumstances. I will only say that business people should not lose their self-esteem due to business failure.
Siddharth wrote in the letter ‘I am broken by pressure from lenders’ , “Despite better efforts, I failed to develop a profitable business model. I struggled for a long time but can’t bear the pressure anymore. A private equity partner is under pressure to buy back shares in a 6-month-old transaction related case. I had completed a part of the transaction by borrowing a large sum of money from a friend. I have broken down due to heavy pressure from other lenders. Prior to income tax, the DG had attached our shares twice to stop Mindtree’s deal. Later, shares of Coffee Day were also attached. This was wrong, due to which we faced a cash crisis. ”
“I request that all of you continue to pursue business with new management firmly.” I am responsible for all the mistakes. I am responsible for all financial transactions. My team, auditors and senior management are not aware of my transactions. The law should only hold me responsible. I did not tell the family or anyone else about it. ”
“I did not intend to mislead or deceive anyone.” As a businessman I failed. Hope you understand one day, forgive me. Enclosing a list of our assets and their possible value. Our assets are more than our liabilities. You can pay the dues of all of them.
The news agency quoted official sources as saying that the Income Tax Department had taken action against Siddharth as per rules. He got Rs 3,200 crore from selling shares of Mindtree. He had deposited only Rs 46 crore out of Rs 300 crore tax.
Siddharth started Coffee-Day Global in 1993, Siddharth was born in Chikmagalur district of Karnataka. His family has been associated with coffee plantations for 140 years. In 1993, Siddharth started Coffee-Day Global (Amalgamated Bean Coffee Trading Company). At that time the revenue was only 6 crores. Café Coffee-Day Global’s revenue reached Rs 1,777 crore in FY 2017-18 and Rs 1,814 crore in 2018-19. At the end of the current financial year, the company expects revenue of Rs 2,250 crore. But, another aspect is that for the last few years, Siddharth was struggling with cash crisis in other businesses including coffee business.
Siddharth sold his entire stake in Mindtree Company last month. Siddharth sold his entire stake in IT company Mindtree to Larsen & Toubro (L&T) last month for Rs 3,000 crore. Earlier he was the largest shareholder of Mindtree with 21% holding. He had a special identity as a successful businessman in the coffee business. CCD has a coffee plantation of 12,000 acres in Karnataka. As of March this year, CCD had 1,752 cafes across the country.