Since Thursday, the Income Tax Department raids on Cafe Coffee Day (CCD) retail chain and found Rs 650 crore concealed income from the documents seized.
“Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income of over Rs 650 crore,” a senior tax official told.
The offices and residence of CCD’s founder owner V.G. Siddhartha and its other officials in Bengaluru, Chikkamagaluru, Hassan and Mysuru across Karnataka were also searched during the last four days.
The search and seize operations, which began on September 21, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT and other areas.
“The searches concluded with the group’s officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure,” said another tax official.
"There are a number of other issues, including violations of other statutes on which there is no disclosure but relevant evidence has been found. These will be pursued effectively as part of our investigation," the report quoted a tax official, as saying.
By number of coffee outlets, Siddhartha's retail chain till 2011 was among the top six globally, behind Starbucks, Dunkin' Donuts, Tim Hortons, Costa Coffee and McCafe.
Coffee Day Enterprises shares tumbled over 9% in an early trade on Monday. The shares of Coffee Day Enterprises were trading at Rs 208.95 down by more than 9.86%.
Siddhartha is the son-in-law of former Karnataka Chief Minister SM Krishna, who was also the minister for external affairs in the United Progressive Alliance government. Krishna had joined the Bharatiya Janata Party in March.