A day after Cafe Coffee Day founder V G Siddhartha was found dead, Finance Minister Nirmala Sitharaman on Thursday said that business failures in the country should “not be tabooed or looked down”.
While responding to the debate on the Insolvency and Bankruptcy Code (IBC) in Lok Sabha, Sitharaman said that businessmen should get honourable exit or resolution to the problem in letter and spirit of the IBC.
“Business failures in this country should not be tabooed, or looked down. On the contrary, we should give an honourable exit or resolution to the problem in letter and spirit of the IBC,” she said referring to the CCD founder’s demise.
The body of Siddhartha was cremated at his ancestral place Chethanahalli in Mudigere taluk of Chikkamagaluru yesterday. He was the son-in-law of former External Affairs Minister and former Karnataka Chief Minister S M Krishna.
Siddhartha had alleged harassment by the Income Tax Department, among other reasons, in a letter purportedly written by him. The IT department, however, has denied the charges.
While speaking on IBC issue in the House Jayadev Galla (TDP) said businesses may fail because of economic downturn or business cycle. Galla also said that accountability of banks need to come under scrutiny.
“Signing of personal guarantee (by industrialist to take loan) is leading to taking extreme action like suicide,” he asserted.
TMC MP Kalyan Banerjee said that those who have taken loans from banks, will have to pay.
On the other hand, Pinaki Misra (BJD) referred to the death of the coffee tycoon, saying it is unfortunate that the insolvency law “should continue to grow and expand in our country.”
“That is not how you reach the USD 5 trillion mark,” he said.
Siddhartha, the 60-year-old businessman was last seen by his driver near a bridge over the Nethravathi river. The body was found after the police launched a massive search operation. Teams of National Disaster Response Force, Coast Guard, Home Guard, fire services and coastal police scoured the river to look for him. Politicians and celebrities from across Karnataka paid tributes to the businessman yesterday.
(With PTI inputs)