Home / BUSINESS / CCD founder VG Siddhartha dead; latest updates: Businessman cremated in Chethanahalli coffee estate – Firstpost

CCD founder VG Siddhartha dead; latest updates: Businessman cremated in Chethanahalli coffee estate – Firstpost

CCD founder VG Siddhartha found dead; LATEST updates: VG Siddhartha’s mortal remains are being taken to his native place, Chethanahalli. The final rites will be conducted at 6.30 pm at his estate.

Former Karnataka chief minister HD Kumaraswamy broke down while paying respects to VG Siddhartha in Chikkamagaluru. Former state ministers DK Shivakumar and KG George were also present at the ABC office premise where the body has been currently kept.

Expressing grief over the death of the CCD founder VG Siddhartha, Union Minister DV Sadananda Gowda on Wednesday asserted that the former “could not have taken his own life.” He was quoted by ANI as saying, “Siddhartha could not have taken his own life. But, a few doubts have surfaced.”

On being asked if he was being harassed by the Income-Tax officers, Gowda said: “I do not know the reality behind the letter alleging harassment by the I-T officials written by him.”

A letter, written by Siddhartha had come to the fore on July 30, in which he had alleged that he was being harassed by the previous directorate general, Income Tax. “Tremendous pressure from other lenders led to me succumbing to the situation,” he wrote.

Congress leader Shashi Tharoor on Wednesday reacted to the death of business tycoon VG Siddhartha and tagging a news report, tweeted, “”Ease of Doing Business” under BJP translates into “Ease of Ending Business”. The #VGSiddhartha tragedy reflects the worst of a broader, deeply worrying trend.”

Former IAS officer and one of the directors of the Coffee Day Enterprises board has been appointed as the company’s interim board chairman after the death of the founder, VG Siddhartha, came to light on Wednesday morning, reports said.

The board also said that it was “unclear” if letter, written by Siddhartha and which was released on Tuesday while the search operations for the businessman were ongoing, pertain to the Cafe Coffee Day company or his “personal holdings”, News18 quoted a statement by the directors as saying. The board is likely to meet again on 8 August.

R Ram Mohan, CFO and Chairman, SICAL, Logistics firm and Subsidiary of Cafe Coffee Day was quoted by News18 as saying, “Board meeting concluded, all are statutory formalities getting completed. We are working to continue with the company and will come out with an action plan.

“As we are completely grief-stricken, we are unable to talk anything on the letter. I also saw it like everyone through WhatsApp.”

Late coffee businessman VG Siddhartha’s mobile phone has not been recovered by the authorities, even as the joint search operation spanning 36 hours resulted in the discovery of the Cafe Coffee Day founder’s body in the Netravati river in Mangaluru. His wallet which contained his credit and debit cards, and his ID card has been found, News9 reported.

Reportedly, the post mortem on the body of Cafe Coffee Day founder-owner VG Siddhartha has been concluded at the Wenlock Hospital and is now heading to the family coffee estate in Chikkamagaluru.

The meeting of the board of directors of the Coffee Day Enterprises, which is the parent company of the Cafe Coffee Day restaurants, has begun at the company’s headquarters in Bengaluru. The board has met to discuss the companies future, after the disappearance of VG Siddhartha, who was the company’s managing director.

Wreaths have also been laid out in front of the office as citizens and corporations alike mourn the “Coffee King”.

On Tuesday, a letter addressed to the board of directors, written purportedly by Siddhartha, surfaced as the search operation for the business tycoon escalated. In the letter, he said that he took sole responsibility for the “failures” and mistakes.

Fugitive liquor baron Vijay Mallya, who is facing extradition proceedings in UK, on Wednesday took to Twitter to draw parallels with the case of Cafe Coffee Day founder VG Siddhartha, who in his suicide letter has alleged “harassment” by the Income Tax Department officials.

Sringeri MLA TD Rajegowda, who is reportedly a close associate of Cafe Coffee Day founder VG Siddhartha who was found dead in the Netravati river after a 36-hour search operation, said that the business tycoon’s family has decided to cremate his body at his father’s estate in the Belur Taluk of Karnataka.

Coffee Day Enterprises’ stock has hit its 20 percent lower circuit for the second day in a row on news of founder VG Siddhartha’s death. At 09.16 am Coffee Day Enterprises was quoting at Rs 123.25, down Rs 30.80, or 19.99 percent. It has touched a 52-week low of Rs 123.25.

The Cafe Coffee Day board of directors will meet at 11 am today in Chikkamagaluru to discuss the company’s future path after the demise of VG Siddhartha, reports said. His wife, Malavika Hegde, with whom he has two children, is on the CCD board. However, it is not clear whether she, or a family representative will attend the meeting or not.

The Cafe Coffee Day management has declared a holiday today nationwide after the news of the brands founder and owner was confirmed. All Cafe Coffee Day outlets have downed their shutters across India.

VG Siddhartha’s body will be taken to his village Cheekanahalli near Chickmagalur, says his family friend and MLA DT Raje Gowda. His aged parents live there and Siddhartha was the only son.

The body of VG Siddhartha, founder of India’s largest Coffee chain Cafe Coffee Day, is being shifted to the Wenlock hospital in Mangaluru, where family members will be formally asked to identify the body. Later, the post-mortem will also be carried out at the same hospital.

The body of Cafe Coffee Day owner VG Siddhartha has been found. The body was recovered by a group of fishermen from the Netravati river, near Hoige Bazaar beach in Mangaluru. The spot from where the body was recovered, was reportedly some distance away from the bridge he was seen on last.

The body of VG Siddhartha, founder of India’s largest Coffee chain Cafe Coffee Day, was found on Wednesday morning. According to News18, the body was recovered from the Netravati river where Siddhartha was seen last on Sunday night.

At the end of a meeting, Coffee Day Enterprises’ Board released a letter, in which it said that it is shocked that Siddhartha has been absent since Monday. The letter, however, says that the operations of the company will remain unaffected, as reported by CNN-News18.

According to reports, a helicopter from Kochi that was supposed to join the search operations for Cafe Coffee Day founder VG Siddhartha on Tuesday has not been able to take off due to bad weather.

News18 quoted Congress leader UT Khader as saying, “Even if it takes off now, we don’t have much time before day light ends. We are seeing if search operations can continue through the night because 24-36 hours are crucial.”

 Former Karnataka chief minister HD Kumaraswamy weighed in on the disappearance of Cafe Coffee Day founder VG Siddhartha and said that he “gave life to many villagers”.

“Siddhartha faced several challenges. He is a role model for youngsters. I met him 7 months ago. He spoke about the income tax raids but didn’t make any charges against anyone. But I saw his letter in the media and it is surprising. Friends also told him to sell the assets but there are some issues with few debts,” he was quoted by India Today as saying.

Karnataka Bank has written to the Bombay Stock Exchange and the National Stock Exchange claiming that VG Siddhartha’s company, Coffee Day Enterprises which is the parent company of the Cafe Coffee Day franchise, owes the bank Rs 152.48 crore.

Local media reports quoting the letter also said that the bank claimed that Siddhartha’s firm pledged property to take the loan.

According to various reports, Siddhartha was talking to someone over the phone when he asked his driver to stop the car near Netravati river and got down around 6:30 pm on Monday. After he failed to show up several minutes later, the driver panicked and called the family.

As part of the ongoing investigation into the disappearance of business tycoon VG Siddhartha on Tuesday, the Karnataka Police searched the premises of his coffee estate in Mudigere in Karnataka. Local reports also said that the employees working at the estate are also being questioned in the probe.

Congress leader Milind Deora said the disappearance of Cafe Coffee Day founder VG Siddhartha was the “ugliest example of agency persecution wrecking India’s growth story”.

He also hoped that Siddhartha is safe and is found soon. He added, “Siddharth is an exceptional entrepreneur who introduced millions of Indians to coffee.”

Heavy rain is creating a roadblock in the search operations for VG Siddhartha at the site of his disappearance around the Netravati River and bridge near Mangaluru in Karnataka. The Cafe Coffee Day founder was last seen on the bridge.

The river directly opens into the sea at a distance of 600 metres, India Today reported.

VG Siddhartha, in his letter, said that he was “solely” responsible for the “mistakes” made. He also requested the staff and the board of directors, to whom the letter was addressed, to be “strong and continue running these businesses with a new management”.

He also said, “Every financial transaction is my responsbility. 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.”

Cafe Coffee Day founder VG Siddhartha, who went missing on Monday night in Mangaluru, in his letter said that there was “tremendous pressure” from other lenders which lead him to “succumb 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 returns have been filed by us,” he said in the letter.

CNN-News18 has accessed a letter purportedly written by Cafe Coffee Day owner VG Siddaratha to the staff of the chain restaurants. In the letter, of which the authenticity and veracity is yet to be confirmed by the Karnataka Police, Siddhartha said that he has failed as an entrepreneur.

VG Siddhartha, the founder of Coffee chain Cafe Coffee Day who also owns Asia’s single-largest coffee estate, is reportedly missing since Monday evening. His phone has been switched off since Monday night.

He is the son-in-law of veteran BJP leader SM Krishna.

Siddhartha was on his way to Mangaluru, Karnataka, and is currently not traceable. Dakshina Kannada Police have intensified their search for the businessman.

According to news reports, on Monday, the 58-year-old entrepreneur left for Chikkamagalur on a business trip in his Innova car. From there, he was to travel to Kerala. But he asked the driver to stop his car at National Highway in Jeppina Mogaru near Mangaluru and got down from the vehicle.

The car driver is said to have told family members that Siddhartha asked him to stop the car at Jepoina Mogaru after which he got down from the vehicle. Siddhartha was allegedly speaking over the phone when he instructed the driver.

The driver waited for Siddhartha, but when he did not return even after half an hour, the driver made a call but Siddhartha’s phone was switched off.

The driver informed Siddhartha’s family immediately.

Jeppina Mogaru, where Siddhartha went missing is situated on the banks of Nethravathi river.

The Mangalaru City Police got a report that someone had jumped off the Ullal bridge and according to statements from people, it is suspected to be Siddhartha, said media reports.

As news of Siddhartha’s missing spread, people began gathering outside the residence of SM Krishna.

Siddartha hails from Chikkamagaluru and is married to the daughter of former chief minister of Karnataka, SM Krishna.

After completing his post-graduation, Siddartha started working at JM Financial Limited in Mumbai. Later, he shifted to Bengaluru and started a company in the name of Sivan Securities. The company was renamed Global Technology Ventures in the year 2000. Along with that he also started the Cafe Coffee Day chain. He has been credited with making the Chikkamagaluru coffee popular worldwide.

The Mindtree connection

In January, the Income Tax Department attached a portion of shares held by V G Siddhartha and Coffee Day Enterprises Ltd in  IT firm Mindtree over a potential tax demand. The attachment also “prohibited for transfer or charge” of 22.2 lakh equity shares of Coffee Day Enterprises Ltd, and 52.7 lakh shares held by Siddhartha.

The Cafe Coffee Day founder was in the news recently for having sold his 21 percent stake in the Bengaluru-based IT firm, Mindtree to infrastructure major Larsen and Toubro (L&T). Mindtree’s promoters— Subroto Bagchi, Krishnakumar Natarajan, NS Parthasarathy, and Rostow Ravanan, together held roughly 13 percent stake in the company, besides VG Siddhartha.

The sale of Siddhartha’s shares put Mindtree in the midst of a takeover battle. Mindtree promoters were opposed to the deal.

According to a CNBC-TV18 report, Siddhartha had invested Rs 340 crore for stakes in Mindtree since 1999. After selling his 20.4 percent stake to L&T, he pocketed a massive profit of nearly Rs 3,000 crore after 20 years.

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CCD founder VG Siddhartha dead; latest updates: Businessman cremated in Chethanahalli coffee estate – Firstpost

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