Shares of coffee retailing chain Cafe Coffee Day (CCD) fell devastatingly after reports emerged that the Income Tax Department of India has raided several offices of the chain across states. The Income Tax Department raids on VG Siddhartha’s Cafe Coffee Day (CCD) retail chain since Thursday found Rs 650 crore concealed income from the documents seized, said an official on Sunday.

“Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai, and Chennai have revealed concealed income of over Rs 650 crore,” a senior tax official told news agency IANS.

The search and seize operations, which began on September 21, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT and other areas.

“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,” said another tax official in an e-mail to IANS.

The searches were conducted under the supervision of the Investigation Cell Director-General BR Balakrishnan, corporate offices of the Amalgamated Bean Coffee (ABC) trading company which operates CCD retail outlets in India were investigated.

The investigation was conducted at ABC’s branch offices at Chikkamagaluru, Mudigere, and Sakeleshpur in Karnataka‘s Malnad region.

After the raids, the shares of the firm went significantly down and suffered a downfall of over 9% on Monday. According to a report in Business Times, the shares of Coffee Day Enterprises were trading at Rs 208.95 down by more than 9.86%.

Cafe Coffee Day is a Chikkamagaluru based coffee empire which is an exporter to various western countries including USA, Europe, and Japan. Owner VG Siddhartha has expanded his business to all the 28 states in India and a host of countries globally.

He opened his first outlet in Bangalore’s Brigade road area in 1996. The chain has since seen a phenomenal rise and has captured the Indian market brilliantly.

(With inputs from agencies)