Shares of Coffee Day Enterprises dropped nearly 4% after Income Tax Department raided the company's founder V. G. Siddhartha offices at multiple locations, media reports said. 

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At 1238 hours the shares of the company were trading at Rs 232.50 per piece, down 3.89% or Rs 9.40 on BSE. 

Soon after the media reports flooded in, the exchange sought clarification from the company. However, the company has not given any reply till now. 

According to a media report, Income Tax officials began raids at Siddhartha's offices in Mumbai, Bengaluru, Chennai and his hometown Chikmagalur in Karnataka. 

The search operations by I-T officials began in the morning and has been going on till now, as stated by Economic Times report. 

Moreover, as per the report, Siddhartha is son-in-law of former Karnataka Chief Minister S.M Krishna. 

Karnataka politicians has been under I-T officials scanner from quite some time now. In August, the raids were conducted at the offices and residence of Karnataka’s Energy Minister D.K.Shivakumar.