Total Debts of VG Siddhartha Touched Rs 11,000 Crores

August 03, 2019 14:02
Total Debts of VG Siddhartha Touched Rs 11,000 Crores

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Total Debts of VG Siddhartha Touched Rs 11,000 Crores:- Cafe Coffee Day founder VG Siddhartha committed suicide this week due to huge financial hurdles and after the mounting pressure from all the corners. As per the data from the stock exchanges and the Ministry of Corporate Affairs, VG Siddhartha's debts peaked to Rs 11,000 crores. The liability of Cafe Coffee Day is said to have debts of Rs 6547 crores as per March 2019. His four private holding companies had outstanding pledges of Rs 3522 crores.

Siddhartha and two other CDEL directors had given personal guarantees towards loans to the tune of Rs 1028 crores. This brings the total to Rs 11,097 crores. Siddhartha's troubles grew bigger after the shares of CDEL declined from the past one year. This forced him to pledge more shares to clear the debts. CDEL shares dipped by 48% from Rs 374.60 to Rs 192.55 in one year. Siddhartha owns 53.93% stake in CDEL. Siddhartha in his letter mentioned that he was unable to cope with the company's mounting debt and he was facing extreme harassment by income tax authorities.

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VG Siddhartha  Cafe Coffee Day