The income tax department on Thursday raided the offices and house of VG Siddhartha, chairman and managing director of Coffee Day Enterprises.
The income tax department on Thursday raided the offices and house of VG Siddhartha, chairman and managing director of Coffee Day Enterprises. Shares of the company, which runs retail coffee chain Cafe Coffee Day, dropped by 3.35% to end at `233.80 on the BSE. I-T department officials conducted raids in about 20 locations across the country including Mumbai, Chennai, Bengaluru and Chikkamagaluru which include Siddhartha’s residence,
offices of Cafe Coffee Day and also outlets. Siddhartha is son-in-law of the former Union minister and Karnataka chief minister SM Krishna. Recently, Krishna joined the BJP after resigning from the Congress.
Meanwhile, the BSE has sought clarifications from Coffee Day Enterprises on reports of fall in share prices following I-T raids. It has not filed any clarification to the bourses till the time the report was filed. The businesses of Coffee Day Enterprises span across integrated coffee, logistics, technology parks & SEZs, financial services and private equity investments. In the technology sector, Siddhartha’s investments are in companies such as Mindtree, Global Edge Software, Magnasoft and Ittiam. Siddharta holds 3.25% in Mindtree in his individual capacity, and his companies – Coffee Day Enterprises and Coffee Day Trading – hold 10.39% and 6.30%, respectively.