Home / Companies / People /  ED says probe against VG Siddhartha ‘not very serious’

New Delhi: As the search to trace Cafe Coffee Day owner V.G. Siddhartha continues, 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 the ED for alleged irregularities in his association with information technology company Mindtree Ltd.

A senior ED official familiar with the development said, “The probe against V.G. Siddhartha was largely being done by the IT department and the ED probe was not very serious. It was on alleged tax irregularities which the concerned tax department was looking into."

The probe agency also said it was yet to liaise with the Mangaluru police in connection with Siddhartha's disappearance.

The son-in-law of former Karnataka chief minister S.M. Krishna, Siddhartha has been missing from Manguluru since Monday evening.

In January, the tax department had attached shares of information technology firm Mindtree worth about 665 crore, owned by VG Siddhartha and Coffee Day Enterprises.

The move came 16 months after the tax department conducted searches at various offices of Siddhartha, following his talks with private equity investors for sale of his stake in Mindtree.

In March, Siddhartha garnered about 3,200 crore by selling his 20.32% stake in software services company Mindtree Ltd to Larsen and Toubro Ltd (L&T), and two CCD affiliate firms (Coffee Day Enterprises Ltd and Coffee Day Trading Ltd). The deal helped Siddhartha repay his debt of about 2,900 crore, vastly improving his financial condition.

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