Ever heard a coffee chain earning such a whopping amount? Imagine sitting at a CCD outlet, sipping on a hot cuppa latte, and you wonder is it really worth it?
The Income Tax Department conducted raids at CCD offices and found Rs 650 crore obscured income. The raid was carried out on 25 places of Café Coffe Day (CCD) and its groups companies in Karnataka, Mumbai and Chennai.
The raids were conducted under the directions and supervision of the Income Tax department’s investigation cell director-general BR Balakrishnan.
The corporate office of the Amalgamated Bean Coffee (ABC) Trading Company, which runs the CCD’s retail outlets across the country were also searched during the exercise. It’s branch offices at Chikkamagaluru, Mudigere and Sakeleshpur in Karnatakas’ Malnad region were under the scrutiny.
An I-T department official said that income disclosed by the group could be “much higher” in amount. Apparently raids were also conducted on CCD’s founder-owner V.G. Siidhartha’s residence.
Another I-T official said, “The searches concluded with the group’s officials admitting to obscured income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure.”
He also added, “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.” “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 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.
V.G. Siddhartha has his roots in politics by the virtue of being the elder son-in-law of former External Affairs Minister S.M. Krishna. S.M. Krishna was also Chief Minister from 1999 to 2004 but left Congress earlier this year to join BJP.