Cafe Coffee Day outlets are run by Amalgamated Bean Coffee Trading Company who corporate office and branches were also searched for.
Owner Siddhartha is the son-in-law of S. M. Krishna(former External Affairs Minister, Congress) who recently joined the BJP. The raids were carried out to gather evidence for the allegations of tax evasion.
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.
A number of other seized documents of properties, business transactions and other dealings are also up for scrutiny. A tax official was quoted,
The searches concluded with the group’s officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure.
Shares of Coffee Day enterprises tanked by 9.86% from INR 208.95 early on Monday morning. They had registered a consolidated net profit of INR 26.83 Cr for the first quarter of 2017 which is a 51.15 per cent increase. Cafe Coffee Day with 33 outlets in Mumbai alone and such a serious blow to their reputation will probably not go down well with so much competition in the business.