Did 'tax terrorism' kill India's 'coffee king'?
Khushboo Razdan
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Image via Cafe Coffee Day official website.

Image via Cafe Coffee Day official website.

Hundreds of mourners thronged Chethanahalli village, some 300 kilometers from the "Silicon Valley of India" Bengaluru, on Wednesday to bid a tearful adieu to the man who's often described as someone who brewed happiness with coffee.

The body of 59-year-old V.G. Siddhartha was fished out of a river in southern India; he went missing on Monday after going out for a walk.

People pay homage to the remains of late coffee baron V.G. Siddhartha, founder of Cafe Coffee Day, in Chethanahalli village of Chikmagalur District, south Indian state of Karnataka, July 31, 2019. /VCG Photo.

People pay homage to the remains of late coffee baron V.G. Siddhartha, founder of Cafe Coffee Day, in Chethanahalli village of Chikmagalur District, south Indian state of Karnataka, July 31, 2019. /VCG Photo.

Regarded as the "coffee king" of India, Siddhartha founded India's biggest coffee chain "Cafe Coffee Day" in 1994 with a tagline "A lot can happen over a coffee," decades before Starbucks Corp. entered one of the world's fastest growing economies.

With over 1,700 stores and 54,000 vending machines, he not only boosted coffee consumption in the traditionally tea-loving nation but also made coffee a part of India's leisure lifestyle, giving the country's youth their first experience of a modern cafe. 

After 2012, Cafe Coffee Day began to feel the pressure of cutthroat competition with the advent of international brands like Costa Coffee and Starbucks. In 2015, in order to raise more money, Siddhartha listed the company, Coffee Day Enterprises Ltd., on the Indian stock exchange but its shares tanked 18 percent on its first trading day. 

Even bigger problems emerged for the coffee czar in 2017 when India's Income Tax Department and Enforcement Directorate raided several locations linked to him. 

Indian coffee tycoon V.G. Siddhartha, founder of Cafe Coffee Day, poses for a photograph at one of his coffee shops in Ahmedabad, Gujarat, India, Oct. 8, 2015. /VCG Photo

Indian coffee tycoon V.G. Siddhartha, founder of Cafe Coffee Day, poses for a photograph at one of his coffee shops in Ahmedabad, Gujarat, India, Oct. 8, 2015. /VCG Photo

Investigating authorities are also probing the authenticity of a suicide note that recently went viral on social media. The letter, purportedly written by Siddhartha, alleges "severe harassment from a former tax officer that caused a serious liquidity crunch."

The letter read, "The income tax department attached our shares on two separate occasions to block our Mindtree deal and then taking a position of our Coffee Day shares, although revised returns have been filed by us."

A suicide note, purportedly written by Siddhartha, has gone viral on social media. /Photo via Twitter

A suicide note, purportedly written by Siddhartha, has gone viral on social media. /Photo via Twitter

'Tax terrorism' to blame?

Many business leaders and politicians have blamed the government's overzealous steps for resulting in "tax terrorism."

Indian Prime Minister Narendra Modi attends a meeting at the BRICS and the Shanghai Cooperation Organization (SCO) summits in Ufa, Russia, July 8, 2015. /VCG Photo

Indian Prime Minister Narendra Modi attends a meeting at the BRICS and the Shanghai Cooperation Organization (SCO) summits in Ufa, Russia, July 8, 2015. /VCG Photo

Anand Mahindra, chairman of Mahindra Group, tweeted, "I did not know him & have no knowledge of his financial circumstances. I only know that entrepreneurs must not allow business failure to destroy their self-esteem. That will bring about the death of entrepreneurship."

Kiran Mazumdar-Shaw, managing director of biotech firm Biocon Ltd., told Reuters that many industrialists who are called for questioning by the tax authorities are made to wait for hours before the questioning begins, and are subjected to an "insulting kind of treatment."

India's fugitive liquor baron Vijay Mallaya also took to Twitter to attack the government on the issue. "The Govt Agencies and Banks can drive anyone to despair. See what they are doing to me despite offer of full repayment. Vicious and unrelenting."

CGTN infographics

CGTN infographics

According to the latest World Bank report, India was pushed to the seventh place in global GDP rankings in 2018. The country's economic growth is estimated to slow to seven percent by the end of this fiscal year 2019-2020.

As the country’s economic slowdown shows no signs of abating, the government is desperate for more funds. Thus, it has set an ambitious target of 193 billion U.S. dollars for this fiscal year, 15 percent more than last year. In Budget 2019, the Modi government said it aims to make India a five-trillion-U.S.-dollar economy by 2024. 

Political blame game

"The End for 'Ease of doing business'! 'Tax Terrorism' claims another life! The 'New India'!" tweeted Randeep Surjewala, chief spokesperson of the opposition Congress party.

Another Congress leader, Shashi Tharoor said, "'Ease of Doing Business' under BJP translates into 'Ease of Ending Business.' The #VGSiddhartha tragedy reflects the worst of a broader, deeply worrying trend."

Hitting back at the grand old party, the ruling BJP called Congress leaders "political vultures," flocking to capitalize on the death of a person.