CCD probe: Rs 2k cr goes missing after founder Siddhartha’s suicide

The months-long probe following the suicide of Siddhartha in July examined the financial transactions of India’s largest coffee chain and its dealings with dozens of private companies owned by the entrepreneur. The draft report, running more than a hundred pages, points to billions of rupees that have gone missing, said the people, asking not to be identified because the details aren’t public.

It also highlights hundreds of transactions between the founder’s listed and personal businesses that were not conducted at arm’s length, they said. Though the report is in its final stages, the precise details could change before its release, expected as early as this week, the people said. The missing funds could total over Rs 2,500 crore, one person said. “The investigation report is still a work in progress, and not finalised,” a spokesman said. “The board of directors and the company are unaware of its content at this point of time. Hence it would be premature to speculate on the investigation findings.” Coffee Day is finalising a deal with Blackstone Group Inc. for real estate assets. A large tranche of the payment is due in about a week, one person said.

Coffee Day said it is working to reduce its debt load by divesting non-core enterprises. “The aim is to save employment and preserve this iconic Indian brand,” the spokesman said. The priority for management and Siddhartha’s family “is to keep the business running in a challenging environment and meet all stakeholder commitments, including 30,000 jobs associated with the group,” the spokesman said. Meanwhile, shares of IndusInd Bank Ltd. and RBL Bank Ltd., lenders to Coffee Day, were among the worst performers on S&P BSE 500 index on Monday with losses of about 15 pc.