BENGALURU: A former CFO of New Silk Route Partners, a US personal fairness (PE) agency, has alleged that the corporate despatched the revenue it produced from an funding in 2011 to the late V G Siddhartha, founding father of Cafe Coffee Day.
Rishi Gupta, who was the CFO until the start of 2017, has mentioned in a lawsuit that the agency earned a revenue of $4.eight million in 2011, when a $14-million funding in international forex convertible bonds of Sical Logistics returned proceeds of $19 million, however “no such achieve was ever booked to the NSR Funds”.
As an alternative, the chief has mentioned, the revenue was channeled to an organization named Welland Investments, and he was requested to cease enquiries concerning the cash switch. The allegations are a part of a lawsuit by Gupta, filed in a New York district court docket, towards his dismissal for allegedly questioning quite a few monetary transactions. New Silk Route is headed by Parag Saxena, the CEO and founding common accomplice, and has investments in Varsity Training Administration, Espresso Day Resorts and Reliance Infratel, in accordance with its web site.
“In 2016, Saxena admitted to Gupta that the NSR Funds’ complete funding within the Sical transaction had been in some unclear manner for Siddhartha’s profit, and that defined why the majority of the revenue had been despatched in 2011 as Siddhartha demanded. Nonetheless, that didn’t resolve the accounting and compliance points confronted by the NSR Funds on account of this questionable transaction,” the lawsuit mentioned. Coffee Day Enterprises didn’t reply to a request for remark, and a message despatched to Saxena didn’t instantly elicit a response.
Espresso Day has been underneath monetary pressure for a while and was the explanation for Siddhartha taking his personal life final yr. A probe into the agency’s monetary troubles laid the blame squarely on the promoter for failing to create a worthwhile enterprise mannequin and relying excessively on debt to run it.



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