Days after Income Tax Department first raided premises of India's largest coffee chain - Cafe Coffee Day (CCD) - owner VG Siddhartha, the income tax sleuths have found Rs 650 crore concealed income from the documents seized while concluding the search and seize operations on Sunday. The Income-tax Department seized the money as they were informed about some black money in his house.
Locations searched in Bengaluru included the group's head office at UB City on Vittal Mallya Road, Siddharth's house in Sadashivanagar, and his establishments at Rajarajeshwari Nagar and Bagmane Tech Park in C V Raman Nagar.
Other raids were carried out the Coffee Day Global Limited office located at Chikkamagaluru, two of its coffee estate offices, a residential school office and the Serai Resorts. The company's segments include Coffee and related business, Leasing of commercial office space, Hospitality Services, Financial Services, Integrated Multimodal Logistics and others.
Siddhartha is the founder-owner of the CCD, a chain of coffee outlets in India, and has been its chairman and managing director since January 17, 2015.
"The searches in a group involved in coffee shop business, tourism business, information technology and other areas concluded with an admission of previously concealed income exceeding Rs 650 crore. The detection of undisclosed income is expected to be a much higher figure", stated a senior I-T officer. Meanwhile the stock tanked 9.44% at Rs 210 per share on BSE attracting a total traded quantity of 0.27 lakh shares.
Violations of statutes with evidence supporting it was also found. B R Balakrishnan is the Director-General of the Investigation cell of Income Tax Department.
VG Siddhartha is the elder son-in-law of former Karnataka Chief Minister SM Krishna.
Cafe Coffee Day is run by the Amalgamated Bean Coffee Trading company.