Coffee Day: A Brewing Storm of Allegations and Financial Woes

A Troubled Empire Crumbles

The once-thriving Coffee Day empire, founded by the late V.G. Siddhartha, has been engulfed in a storm of allegations and financial turmoil. The company, known for its ubiquitous coffee shops across India, has been facing mounting debts and scrutiny over its accounting practices.

Allegations of Fraud and Mismanagement

Coffee Day's troubles began in July 2019 when Siddhartha went missing. His body was later found in a river, and a suicide note purportedly written by him raised allegations of financial fraud. The note claimed that he had been facing pressure from lenders and tax authorities due to over-leveraging and inflated financial statements.

The Economic Times reported that the auditors of Coffee Day had raised concerns about its financial statements, alleging that the company had inflated its profits and assets.