The brand Cafe Coffee Day is in hot waters these days. Reports by leading dailies point at a release of Rs.650 crores of concealed income. Search operations were carried out at 26 locations of Cafe Coffee Day. Not only this, it’s group companies at Karnataka, Mumbai and Chennai were raided. Income Tax officials were then able to discover the huge amount of undisclosed income.
The Income Tax officials have searched and finally the officials of the group have admitted to the amount of 650 crores. More is expected to be revealed as per reports. V V Siddhartha has had Income Tax officials combing his office and residence. He is the CCDs founder cum owner and has offices in Bengaluru, Chikkamagaluru, Hassan and Mysuru. These have been searched by officials in the last 4 days. Siddhartha happens to be the elder son-in-law of former External Affairs Minister S M Krishna, who was also Chief Minister from 1999 to 2004. Earlier this year he left the Congress to join the Bharatiya Janata Party.
Cafe Coffee Day is run by the Amalgamated Bean Coffee Trading company. Apart from the concealed income unearthed by Income Tax department, there are other issues. 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. It was under his directions and supervision that this was carried out.
The investigations are still on and Cafe Coffee Day is expected to come up with more revealing stories soon. Various documents pertaining to properties, business transactions and other dealings have been taken in for investigation.