'I have failed as an entrepreneur': CCD founder VG Siddhartha in letter to board
7 min read 30 Jul 2019, 08:31 AM ISTThe letter is addressed to the 'Board of Directors and Coffee Day family'In his letter, he also said he was under 'tremendous pressure' from one of 'the private equity partners'
PremiumVG Siddhartha, son-in-law of former Karnataka chief minister SM Krishna and the founder-owner of the chain of Cafe Coffee Day, has gone missing from Mangaluru in Karnataka. As per the reports, he was last seen near Netravati River in Mangaluru.
According to police, Siddhartha was headed for Sakaleshpur but on the way he had asked his driver to go towards Mangaluru. On reaching a bridge over the Netravati river in the Kotepura area in Dakshina Kannada district, he got down from the car and told his driver that he was going for a walk.
Police began search in the area after Siddhartha's driver filed a complaint with the police on Tuesday morning raising suspicion if the person who jumped off the bridge was indeed the CCD founder.
A slew of senior leaders including state Chief Minister BS Yediyurappa and Congress leader B L Shankar visited the house of former state chief minister S M Krishna early morning today, hours after Krishna's son-in-law went missing.
Large numbers of well-wishers were also spotted at Krishna's house since after the reports of his son-in-law going missing became public.
Here are the latest updates:
8.25 pm: Search operations in Mangaluru to resume on Wednesday morning; Siddhartha still untraceable
6.00 pm: Assessing situation after disappearance of chairman Siddhartha: Coffee Day
5.20 pm: Coffee Day Enterprises holds emergency board meeting on Tuesday, after Siddhartha goes missing. Read more.
4.15 pm: The Income Tax Department has acted as per law in its probe against Café Coffee Day (CCD) promoter V G Siddhartha, official sources said on Tuesday, after a letter purportedly written by him accused tax authorities of harassment, PTI reported
4.05 pm: Local boys, who were angling at the river bank at 7 pm on Monday, informed the police that they did see a man jump into the river from the eighth pillar of the bridge. They cast a net to save him but the current was too strong and the person was swept away fast. Read more
3.50 pm: KKR says still owns over 6% in CCD
KKR in a statement Tuesday said it had invested in the popular coffee chain nine years ago and part-exited the investment last year. The fund statement added that it continues to hold about 6 percent in the company now down from 10.3 percent earlier. "We are deeply saddened by the developments and our thoughts are with his family at this time. We believe in VG Siddhartha and had invested in the company about nine years ago," KKR said in a statement.
3.35 pm: HDFC says no exposure to co since January
HDFC denied it has any exposure to any of the companies associated with VC Siddhartha. "HDFC had disbursed lease rental discounting loans to Tanglin Developments (CCD) for its project Global Village Tech Park in Bangalore. The entire loan was repaid in January 2019 and has no exposure to the Coffee Day Enterprises group as on date," PTI quoted an HDFC spokesperson as saying.
3: 25 pm: In the letter to BSE CCD says: "This is to inform you that VG Siddhartha, Chairman and Managing Director of Coffee Day Enterprises Limited has not been 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."
3.05 pm: As the search operation to find the missing CCD founder is going on, Karnataka Bank has sent a letter to BSE, clarifying that the bank does not have any exposure to Coffee Day Enterprises Ltd.
2.55 pm: Congress Legislative Party leader Siddaramaiah and former Assembly Speaker, KR Ramesh Kumar meet Former Union Min SM Krishna at his residence in Bengaluru.
2.30 pm: Visuals of NDRF team conducting rescue operation in Netravati river
2:06 pm: Coffee Day Enterprises has told stock exchanges that the company is professionally managed and led by a competent leadership team, which will ensure continuity of business.
2:05 pm: Coffee Day Enterprises has written to stock exchanges confirming the absence of its chairman and managing director V G Siddhartha.
1.45 pm: Deputy commissioner of police (DCP) Hanumantharaya told Mint that there are chances of the body being swept away into the river course further south towards the breakwater. In the past incidents of drowning, the bodies have been recovered 5-10 km from the Nethravati river bridge.
1.38 pm: DK Shivakumar, Congress on VG Siddhartha: This incident is hard to believe, I've asked for an investigation. He is an asset to the country, we don't know if he is missing or someone has taken him away.
1.20 pm: Coast Guard, NDRF roped in for massive search operation
1.10 pm: Janata Dal (Secular) leader HD Deve Gowda arrives at the residence of former Karnataka CM, SM Krishna in Bengaluru.
1.05 pm: Congress leader DK Shivakumar said that he finds this letter 'utterly fishy' and urge a thorough Investigation be conducted into this matter
12.58 pm: Congress leader Milind Deora tweeted: Shocked by VG Siddhartha’s sudden disappearance. Hope he is safe and found soon. Siddhartha is an exceptional entrepreneur who introduced millions of Indians to coffee.
12.50 pm: Biocon CMD Kiran Mazumdar Shaw: It seems to indicate that the Private Equity fund manager acted like a money lender n seems to have caused unbearable stress - needs to be investigated.
12.40 pm: ACV (H-198)undertaking search in Netravati River and providing support to 3 diving teams.
12.30 pm: Indian Coast Guard's ICGS Rajdoot to patrol off old Mangalore Port and maintain lookout close to harbour mouth.
12.10 pm: BJP MP Shobha Karandlaje tweeted, 'It's unfortunate that man who has given jobs to the thousands of Kannadigas goes missing.'
12.00 am: Karnataka BJP MPs including Nalin Kumar Kateel, Karadi Sanganna, Bhagwant Khuba, B C Gathi Gowda and Y Devendrappa meet Home Minister Amit Shah; seek help to trace missing CCD founder.
11.40 am: We are conducting search and rescue operation. 8 teams conducting search along with Coast Guard and NDRF. We have also asked for support from Navy, Karwar: Dist Commissioner, Dakshin Kannada, Sasikanth Senthil.
11.20 am: The Enforcement Directorate (ED), which was probing the entrepreneur, said the investigation against him “was not very serious and detailed". Siddhartha was under the scanner of Income Tax department and ED for alleged irregularities in his association with information technology company Mindtree Ltd. Read more
11.15 am: BJP MP Shobha Karandlaje has also written to Union Defence Minister Rajnath Singh seeking help of central government to trace missing founder and owner of Cafe Coffee Day, VG Siddhartha.
11.08 am: Shobha Karandlaje has requested the Central Government for the deployment of coastal guards, central forces and helicopters to aid in the search of the missing businessman.
11.00 am: BJP MP from Karnataka Shobha Karandlaje today met Home Minister Amit Shah and requested him for central assistance in tracing VG Siddhartha, a resident of her Udupi-Chikkamagaluru constituency constituency. She handed over a letter to Shah over the matter. "The heavy rain and the current weather condition in Karnataka are causing a problem for the speedy search operations", a portion of her letter to Amit Shah read.
10.55 am: Former Karnataka chief minister HD Kumaraswamy visits residence of former union minister SM Krishna.
10.35 am: My intention was never to cheat or mislead anybody. I have failed as an entrepreneur. This is my sincere submission: VG Siddhartha's letter to employees.
10.05 am: Coffee Day Enterprises slumped 20% to hit a low of ₹154.05 on BSE.
9.45 am: VG Siddhartha's letter to employees and board of directors of CCD, states, "Every financial transaction is my responsibility...the law should hold me & only me accountable."
9.25 am: More than 200 policemen and divers on about 25 boats were carrying out searches for him, PTI reported.
9.15 am: The deputy commissioner of Dakshina Kannada district Senthil Sasikant said that sniffer dogs have also been pressed into service.
9.05 am: Congress leader DK Shivakumar visited former Karnataka CM, SM Krishna at his residence in Bengaluru, early morning today.
8.55 am: Mangaluru Police Commissioner S Patil: I visited SM Krishna's house last night. I spoke to Siddhartha's wife and other relatives and gathered some information.
8.45 am: Boat service and help of local fishermen being taken to conduct search operation in the Netravati river. We are checking with whom all he spoke last, said Mangaluru Police Commissioner
8.40 am: Mangaluru Police Commissioner, Sandeep Patil as quoted by ANI: Yesterday, he left from Bengaluru saying he is going to Sakleshpur. But on the way,he told his driver to go to Mangaluru. On reaching Netravati river bridge, he got down from the car, asked his driver to go ahead and stop.
8.30 am: Congress leader, UT Khadar is present at the site of search operation in Mangaluru. He said he was shocked when he got the news.
8.05 am: Visuals from the residence of SM Krishna. Read more
VG Siddhartha is the promoter of the Coffee Day Group. His family has been in the coffee growing business for more than 130 years. The Coffee Day Group has interests in coffee retailing, logistics, technology parks (SEZ and STP scheme), financial services and investments in tech companies. The coffee retailing business under the brand Café Coffee Day is the market leader in India.
He sold his entire 20 per cent equity stake in Mindtree Ltd to the Mumbai-based Larsen & Toubro (L&T) for ₹3,300 crore at ₹980 per share of ₹10 face value on 18 March 2019.
