CCD group’s Rs 650 cr assets unearthed

Source: The Hitavada      Date: 26 Sep 2017 08:55:01



V G Siddhartha, the chairman and Managing Director of CCD, is son-in-law of S M Krishna

Searches were carried out for four days at more than 20 locations in Bengaluru, Hassan, Chikkamagaluru, Chennai and Mumbai

SEARCHES at the properties of V G Siddhartha, the son-in-law of former Karnataka Chief Minister S M Krishna and founder-owner of Cafe Coffee Day (CCD) group, have revealed undisclosed assets worth Rs 650 crore, the Income Tax (I-T) Department said on Monday.
The raids were conducted under the directions and supervision of the Income Tax Department’s Investigation Cell Director-General B R Balakrishnan. The searches
were conducted for four days from September 21 at multiple locations.

“The searches in a group involved in coffee, tourism, information technology and other areas concluded with an admission of previously concealed income exceeding Rs 650 crore,” said an I-T Department official.
According to the official, the department apprehends that the figure of undisclosed income could be “much higher”.
The raids revealed that there were a number of other issues including violations of other statutes on which there was no disclosure but relevant evidence had been found, the official said, adding that these matters would be pursued effectively.

The searches were held in more than 20 locations, where Siddhartha, the chairman and managing director of CCD, has made investment or has stakes.
The raids were conducted in Bengaluru, Hassan, Chikkamagaluru, Chennai and Mumbai.
CCD declined to comment on the I-T Department’s claims.
However, Coffee Day Enterprises Ltd in a filing to BSE said that search/survey was carried out by the Income Tax authorities on the company and its subsidiaries starting September 21 and ending September 24.

It said, “We wish to inform that we have extended full cooperation to the Income Tax authorities. Further, we submit that there is no information discovered which would have a significant impact on the financial position of Coffee Day Enterprises and its subsidiaries.”

“Further any information which is considered to have material impact in nature discovered later will be intimated to the Exchange immediately,” it said. The officials were thoroughly examining records that runs into thousands of pages besides hard discs and pen drives and the correct undisclosed income is expected to be a much higher figure, sources said.

A few months ago, Krishna had quit the Congress partt and joined the BJP, alleging that he had been sidelined by the grand old party.