Coffee Day Enterprises Ltd, which owns Cafe Coffee Day, on Monday said the Income Tax department raids between Thursday and Sunday at its offices revealed no information that could have a significant impact on the company’s financial position. In a Bombay Stock Exchange filing, the company said any information considered to have a “material impact” will be communicated.
The raids, which began on September 21, are said to have revealed concealed income of Rs 650 crore, IANS reported earlier on Monday. “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,” an unidentified senior tax official said on Sunday.
The offices and homes of Cafe Coffee Day founder-owner VG Siddartha in Bengaluru, Chikkamagaluru, Hassan and Mysuru in Karnataka were raided. Siddartha is the son-in-law of former Congress leader SM Krishna, who joined the Bharatiya Janata Party earlier this year. Officials were looking for evidence to prove allegations of tax evasion against Siddhartha.
“There are a number of other issues, including violations of other statutes on which there is no disclosure [by Cafe Coffee Day], but relevant evidence has been found,” the Income Tax department said in an email to the news agency.
The corporate office of the Amalgamated Bean Coffee Trading Company, which runs Cafe Coffee Day’s retail outlets in India, was also searched, as were its branches in Chikkamagaluru, Mudigere and Sakeleshpur in Karnataka. “Though we have found and seized a number of documents related to properties, business transactions and other dealings, they are subject to scrutiny for violations, if any,” the unidentified official said.