Business News

Cafe Coffee Day probe reveals Rs 3,500 crore fund diversion, IT department gets clean chit

New Delhi: Investigation into the alleged suicide case of Cafe Coffee Day group owner VG Siddharth has revealed that his private companies were being lured to Rs 3,535 crore from the parent company. After this investigation, the Income Tax Department has got a clean chit, because he was being accused of harassing Siddharth.

Investigations led by former CBI Deputy Inspector General Ashok Kumar Malhotra revealed that Siddharth owed Rs 3,535 crore to the subsidiary units of Coffee Day Enterprises Ltd over Mysore Amalgamated Coffee Estate Limited (MACEL). As per the audit details, on March 31, 2019, the outstanding of CDEL subsidiaries of Rs 842 crore was shown to MACEL. Thus, an amount of Rs 2,693 crore was assumed as incremental outstanding. Investigations found that CDEL started the process to get this money from MACEL.

Siddharth was found dead on 31 July 2019. His body was recovered from Netravati river in Dakshina Kannada district of Karnataka. Meanwhile, Siddharth's wife and CDEL director Malvika Hegde has assured the board and the concerned authority of all possible help in further proceedings.