Tempers run high at MMB
“Coffee piya hai ya daru,” a member named ‘guest’ yelled in a belligerent manner.
His question was directed to another member named ‘dev_2011’, a distinguished ‘gold member’.
The reason for the guest’s ire was because ‘dev_2011’ predicted that Coffee Day Enterprises would slump to a low of Rs. 40 in the wake of the disclosures of concealed income made during the raid.
Normally, the punters who frequent MMB maintain strict protocol. The rank awarded to the punters by the administrator determines who has the final say.
Gold and Silver members are treated with utmost deference by the other members.
However, today the protocol was thrown to the winds and there was a free-for-all.
Some were so frustrated that they even resorted to unparliamentary language.
“madar,,,,,, ne hum shareholders ke hisse par daka dala wo bhi 650 crore se adhik ka, tabhi to iska bhaw ipo price se hamesha niche hi raha. VG SIDDHARTHA ayash hai sala,” rrajeshpoddarr, a silver member fumed.
“650 crores of black money is reported in the press. If it belongs to CCD then it should belong to CCD shareholders after paying tax n penalty. While the office bearers should be persecuted for fraud. Unfortunately India business does not work that way. God knows how it works!” Hubara, a silver member lamented.
— Sir Ravindra Jadeja (@SirJadeja) September 25, 2017
From suave businessman to tax “chor”?
What shocked everyone is the fact that VG Siddhartha is not the typical “chor” promoter that one is accustomed to seeing at Dalal Street.
Instead, he is highly educated and sophisticated in his outlook and comes across as a new-age promoter who is concerned about the welfare of the minority shareholders.
He recently delivered an inspirational talk to the young and impressionable students of IIT Kanpur in which he exhorted them to work hard and walk on the straight and narrow path.
However, if the allegations of the Income-tax department are proved true, Siddhartha may have only set up a facade of sophistry and clean governance.
At heart, he may be no less a cunning and unscrupulous businessman, determined to milk the Company and the minority shareholders for his own personal benefit.
Income tax raids at CCD owners house. Wil boycott CCD from now on and will have coffee only at the tapri. Like always.
— Yathish (@dimaagkoshot) September 26, 2017
Courting controversy with roaches in coffee
Cafe Coffee Day earlier sprang into infamy by its mishandling the ‘cockroach in coffee’ controversy.
A youngster named Aman Verma spotted the roaches and drew the attention of the staff to it. However, instead of complimenting him for his eagle eye, the staff roughed him up.
जयपुर.हवामहल के पास वाला CCD. कैसे एक सेल्स गर्ल एक ग्राहक को थप्पड़ मार रही है. वजह? ग्राहक फ्रिज में भरे कॉकरोच का वीडियो बना रहा था! pic.twitter.com/fpyc5qv8lL
— आज तक (@aajtak) March 28, 2017
This was a terrible tactical error because the youngster cleverly recorded the entire incident and posted it on youtube.
There was a hue and cry on twitter with all youngsters taking a vow that they will never again step foot in another CCD outlet.
Not visiting Cockroach Coffee Day again. #boycottCCD
— Pistullah (@kote_sidda) April 5, 2017
— Abhishek Bera (@AbhishekBera1) April 7, 2017
Instead of gracefully apologizing for the goof up, CCD compounded matters by filing a police complaint alleging that the youngster had ‘molested’ their staff.
— Shweta Singh (@ssh1302) April 16, 2017
@ CafeCoffeeDay Sad to see a responsible company like you behaving this way. I am going to #boycottCCD
— Nikhil Chamankar (@nikhil_c8) April 6, 2017
No doubt, the already dwindling sales of CCD suffered a body blow from the incident.
— Arunchandra C (@arunchandrac) September 21, 2017
— RS (@AwaraRish) September 26, 2017
CCD forced employee to commit suicide?
There is also a horrible story of an employee who committed suicide allegedly owing to the stress and false promises that the top brass at Cafe Coffee Day subjected him to over several years.
— Abhinav Srivastava (@abhinav023) July 26, 2017
Billionaires bail out of stock leaving Nandan Nilekani to hold the can
VG Siddhartha’s charm attracted Billionaires Rakesh Jhunjhunwala, Radhakishan Damani and Ramesh Damani to invest in the Cafe Coffee Day IPO as anchor investors (see Legends & Novices Sulk Alike As Coffee Stock, Served Cold, Sinks On Debut).
However, the sixth sense of the trio alerted them to the fact that all is not well with the Company. They quietly dumped their holdings when no one was looking.
Nandan Nilekani, the illustrious co-founder of Infosys, obviously lacks the investing acumen of Rakesh Jhunjhunwala and the others.
As of 30th June 2017, Nandan continues to hold a massive chunk of 52,94,106 shares of Coffee Day Enterprises. The investment is worth Rs. 115 crore at the CMP of Rs. 217.
Prima facie, Nandan Nilekani would be well advised to dump his entire holding in the junkyard stock and find better investment opportunities for his hard-earned money!