1. Cafe Coffee Day owner VG Siddhartha premises raided by I-T dept; over 20 locations targetted in Bengaluru, Mumbai and more

Cafe Coffee Day owner VG Siddhartha premises raided by I-T dept; over 20 locations targetted in Bengaluru, Mumbai and more

The Income Tax department raided premises of VG Siddhartha on Thursday morning, reported news agency ANI. Siddhartha is the son-in-law of former Karnataka CM SM Krishna and the owner of the popular eating outlet, Cafe Coffee Day.

By: | New Delhi | Updated: September 21, 2017 11:20 AM
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The Income Tax department raided premises of VG Siddhartha on Thursday morning, reported news agency ANI. Siddhartha is the son-in-law of former Karnataka CM SM Krishna and the owner of the popular eating outlet, Cafe Coffee Day. These raids were conducted in over 20 locations in Bengaluru, Mumbai, Chennai and Chikmagalur. As per the last report, the raids were still being conducted. CCD is India’s largest coffee retail chain and was built on a vertical integration plan of sourcing coffee bean from its plantations in Chikmagalur and then straight to the consumer.

The impact of this raid was seen on the stock market as well. As soon as the news of Income Tax raids on Cafe Coffee Day became public, the Coffee Day Enterprises shares slipped over by 4% in an early trade. At the start of the day, the shares were trading at Rs 231.55 but went down by more than 4.15%.

According to a report in The Hindu, the raid was conducted to verify if there was any undisclosed income and has no relation with any past case. The company had earlier reported a 51.15% increase in consolidated net profit to Rs 26.83 crore for the first quarter ended June 30, 2017.

It was also reported that local police was deployed at the entrances of the resort and offices on Mudigere Road in Chikkamagaluru and curing centre on Belur Road in Hassan. It is believed that the officials from Hassan and Mysuru are invloved in the search operations.

Siddhartha established his first Cafe Cofee Day in Karnataka in 1996 and now has over 1500 outlets across India. Apart from CCD, Siddhartha also founded Global Technology Ventures Ltd. in 2000, a company that identifies, invests and mentors Indian companies engaged in cutting-edge technologies.

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