Cafe Coffee Day Founder V G Siddhartha no more, Co board makes interim appointments

Cafe Coffee Day founder V G Siddhartha was missing since Jul 29, body recovered after 2 days on Netravati River bank near Mangaluru, on Jul 31

UPDATES : The Coffee Day Enterprises Company Board appoints SV Ranganath as Interim Chairman of the Board.
UPDATES : The Coffee Day Enterprises Company Board appoints Nitin Bagmane as an Interim Chief Operating Officer.
UPDATES : ICRA puts Coffee Day Enterprises Ltd & Co’s debt on rating watch with negative implications
UPDATES : Body of V G Siddhartha to be kept for viewing from 2:00pm to 4:30pm today in Chikkamangaluru
UPDATES : V G Siddhartha’s body found on river bank in Manguluru, last rites to be performed at Chikkamangaluru
UPDATES : Coffee Day Enterprises shares hit 20% lower circuit on Tuesday – Jul 30, 2019 on Indian Bourses
UPDATES : Coffee Day Enterprise Ltd’s Board to meet on Tuesday – Jul 30, 2019 at 3:00pm


BENGALURU | MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT –  In a regulatory update submitted to the Indian Stock Exchanges, by Coffee Day Enterprises Ltd it said that Café Coffee Day founder V G Siddhartha has gone missing and is not reachable since Monday – July 29, 2019 – evening and that company officials are taking help of concerned authorities.

The filing submitted to the Indian Bourses read that,  Mr. V G Siddhartha, Chairman and Managing Director of Coffee Day Enterprises Limited has not reachable since yesterday evening.

We are taking the help of concerned authorities.

Company is professionally managed and led by competent leadership team, which will ensure continuity of business.


BACKGROUND

Several media reports in India indicate that Siddhartha, who went missing from Bengaluru on Monday, had a few days back written to his employees apologizing for failing to create ‘a right profitable business model’.

Hindustan Times reports that, Siddhartha went missing after asking his driver to drop him off at the Netravathi bridge in Mangaluru as he wanted to take a walk.

There was no sight of him an hour later and the driver alerted the family, and they in turn informed the authorities.

“I am very sorry to let down all the people who put their trust in me. I fought for a long time but today I gave up as I could not take any more pressure,” Siddhartha, the son-in-law of former Union Minister SM Krishna, wrote in the letter dated July 27, Hindustan Times reported.

“My intention was never to cheat or mislead anybody, I have failed as an entrepreneur. This Is my sincere submission, I hope someday you will understand, forgive and pardon me,” it further adds.

Siddhartha, who started his CCD chain with an outlet in Bengaluru and soon rose 15,000 outlets, enclosed a list of assets and tentative value of each asset with the letter.

“As seen our assets outweigh our liabilities and can help repay everybody,” he wrote signing off, Hindustan Times reports.


Full Text of the letter,

as reported by FIRST POST says …


To our Board of Directors and Coffee day family,

After 37 years, with strong commitment to hard work, having directly created 30,000 jobs in our companies and their subsidiaries, as well as another 20,000 jobs in technology company where I have been a large shareholder since its founding, I have failed to create the right profitable business model despite my best efforts.

I would like to say I gave it my all. I am very sorry to let down all the people that put their trust in me. I fought for a long time but today I gave up as I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders lead to me succumbing to the situation. There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking position of our Coffee Day shares, although the revised return have been filed by us. This was very unfair and has led to a serious liquidity crunch.

I sincerely request each of you to be strong and to continue to run these businesses with a new management. I am solely responsible for all mistakes. 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.

My intention was never to cheat or mislead anybody, I have failed as an entrepreneur. This is my sincere submission, I hope someday you will understand, forgive and pardon me.

I have enclosed a list of our assets and tentative value of each asset. As seen below our assets outweigh our liabilities and can help repay everybody.

Regards,

V.G. Siddhartha


Letter addressed by VG Siddhartha, missing CMD of Coffee Day Enterprises Ltd

Letter addressed by VG Siddhartha, missing CMD of Coffee Day Enterprises Ltd


WHO IS V. G. SIDDHARTHA?

  • Owner of single-largest coffee estate in Asia
  • Son-in-law of SM Krishnan, former Union Minister and Veteran BJP Leader
  • Hails from Chikkamangaluru and is married to daughter of SM Krishnan
  • Completed his Graduation in Arts and post-graduation in Economics from Mangalore
  • After post-graduation he moved to Mumbai, to join JM Financial at Mumbai
  • Later he is learnt to have shifted to Bangalore.
  • In Bangalore Siddhartha started company in name of Sivan Securities.
  • The same company Sivan Securities was renamed Global Technology Ventures, in year 2000.
  • Along with same venture he kicked-off Cafe Coffee Day chain.
  • Siddhartha has been credited of making Chikkamangaluru coffee popular worldwide.

WHAT IS ON?

Cops are learnt to have searching Nethravati river and surrounding areas, Dakshin Kannada Police have intensified their search for the businessman, media reports say.

Meanwhile, social media is taken by a storm by tweets and updates from renowned names are surfacing on the Twitter, related to sudden disappearance of V G Siddhartha which is trending as #VGSiddhartha and can be searched on social media, accordingly.

Reports of Shobhna Karandlaje, Member of Parliament representing Udupi-Chikkamangaluru constituency and General Secretary of Karnataka BJP is met Union Home Minister Amit Shah and Defence Minister for State Shripad Y. Naik, requesting to seek help from centre to assist search of missing entrepreneur.

Eight teams of Coast Guard, NDRF deployed for search operations, confirms official : says FIRST POST, BSY demands minute-to-minute update in same matter.



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