I-T Dept raids Cafe Coffee Day, detects over Rs. 650 crore as undisclosed income
September 25, 2017On Thursday, income tax department conducted raids on various properties of Cafe Cofee Day, the country’s largest coffee retail chain. After completing the investigation on Sunday, the department detected that Rs. 650 crore as undisclosed income.
An official of the tax department said that “most likely the undisclosed income is a much higher amount. Currently, the investigation involved in tourism, coffee, information and technology with an admission of previously concealed income exceeding Rs. 650 crore.”
Around 25 locations including Bengaluru (the head office of the chain), Chennai, Mumbai were investigated by the Income Tax department for over four days. The CCD office in Vittal Mallya road was the main hub for conducting the raid.
Further, the offices and residence of CCD’s founder-owner V.G. Siddhartha and its other officials in Bengaluru, Hassan, Mysuru, Chikkamagaluru across Karnataka were searched thoroughly during the investigations.
V.G. Siddhartha is the elder son-in-law of the former External Affairs Minister S.M. Krishna who was also the Chief Minister from 1999-2004. This year, S.M. Krishna left the Congress party and joined Bharatiya Janata Party.
Apart from undisclosed income, there are various other issues, including violations of other statutes. An official of the income tax department said that all these violations will also be pursued effectively as the part of the investigation process.
During the investigation process, a number of documents pertaining to properties, business, transactions and other dealings are subjected to scrutiny for violations if any.
CCD is one of the largest coffee shop franchises in the country and has around 1,550 stores across the country with 12,000 corporate accounts and 31,000 vending machines.
Besides this, the coffee retail chain has also outlets in other countries like Prague, Vienna and Kuala Lumpur.
An official of the tax department said that “most likely the undisclosed income is a much higher amount. Currently, the investigation involved in tourism, coffee, information and technology with an admission of previously concealed income exceeding Rs. 650 crore.”
Around 25 locations including Bengaluru (the head office of the chain), Chennai, Mumbai were investigated by the Income Tax department for over four days. The CCD office in Vittal Mallya road was the main hub for conducting the raid.
Further, the offices and residence of CCD’s founder-owner V.G. Siddhartha and its other officials in Bengaluru, Hassan, Mysuru, Chikkamagaluru across Karnataka were searched thoroughly during the investigations.
V.G. Siddhartha is the elder son-in-law of the former External Affairs Minister S.M. Krishna who was also the Chief Minister from 1999-2004. This year, S.M. Krishna left the Congress party and joined Bharatiya Janata Party.
Apart from undisclosed income, there are various other issues, including violations of other statutes. An official of the income tax department said that all these violations will also be pursued effectively as the part of the investigation process.
During the investigation process, a number of documents pertaining to properties, business, transactions and other dealings are subjected to scrutiny for violations if any.
CCD is one of the largest coffee shop franchises in the country and has around 1,550 stores across the country with 12,000 corporate accounts and 31,000 vending machines.
Besides this, the coffee retail chain has also outlets in other countries like Prague, Vienna and Kuala Lumpur.
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