Tax raids were conducted at the offices of Saravana Bhavan and other restaurant chains.
Income Tax authorities cracking down on five restaurant majors in Chennai claim to have recovered incriminating evidence of that they suppressed local income and siphoned away income generated overseas.
“In the case of overseas restaurant, they siphon off claiming payment of huge royalty. The royalty recipients are NRIs who evade tax payment. Restaurant chains who operate locally have suppressed income and the quantum of evasion would be clear after the conclusion of raids,” a senior officer told NDTV.
The raids continued for the second day at the corporate offices, homes of the directors and financial officers of Saravana Bhavan, Anjappar, Hot Breads and two groups under Grand Sweets.
The officer added, “In some places raids are still on. In some we have concluded. In some officers have temporarily stopped for refreshing.”
The vegetarian food chain Saravana Bhavan has 66 outlets in 20 countries including the US, UK and Australia. It has and 25 restaurants in India.
Anjappar, a Chettinad cuisine chain has 70 outlets in India and abroad.
Grand Sweets, a 25-year-old group is into sweets and savouries. Hot Breads, a bakery and pastries group has outlets in Tamil Nadu and Puducherry.
These groups have not responded to the raids yet. Many of them are inaccessible.