IT Dept Unearths Rs 650 Cr Undisclosed Income of Cafe Coffee Day; Stocks Witness 10% Decline

Bengaluru: Taste of coffee at Cafe Coffee Day (CCD) outlets, restaurants  has turned bitter on Monday after officials from income tax (IT) department found undisclosed income of Rs 650 crore from the records seized during a four day long raid on the CCD retain chain at 25 different locations in Karnataka, Mumbai and Chennai, sources said.

IT department started its search and seize operations on September 21 and concluded on September 24 evening.  As of now, IT officers have found concealed income of Rs 650 and the number is expected to go up after proper scrutiny of the documents seized, IT officials said.

IT department raided the offices, residence of CCD’s owner V G Siddhartha and others in Bengaluru, Chikkamagaluru, Hassan and Mysuru for the past four days. Siddhartha is the elder son-in-law of former External Affairs Minister, Karnataka Chief Minister SM Krishna.

Meanwhile, share prices of Coffee Day Enterprises Ltd recoded a decline of more than 10% at Bombay Stock Exchange (BSE) on Monday following unexpected IT raid on the company. Company share was seen trading at Rs 208.10 per share with a decline of Rs 23.80.