Commercial tax dept conducts inspection in Saravana Bhavan restaurants

The search is in the wake of spurt in foot-fall and sales owing to the combo offers and reduced prices, says the company

The Commercial Taxes Department of Tamil Nadu conducting searches across famous  vegetarian restaurant chain Saravana Bhavan's restaurant, offices and godowns.

Departments sources has confirmed that development and said that the "inspection" is getting carried out in around  40 restaurant and office premises and around 10 godowns. The officials were asked to assemble at 5 am in the morning and the inspection started early in the morning itself.

However, they said that the action is not based on any prior assumptions and is part of general periodical inspection. The difference is that it is conducted in one go in various places, this time, added the official.

Confirming the raid, an official from Saravana Bhavan, said that the search was in the backdrop of the recent increase in number of foot-falls in the restaurant. The restaurant chain, which focuses on mid and premium customers, has introduced various special combo offers and reduced price of some of the dishes almost three months back, to attract more middle class customers.

This has resulted in increase in foot-fall and sales, and the inspection of officials is to check whether the accounting is proper, in the wake of spurt in sales. According to the hotel chain, the inspection started around 9 AM in the morning and took place in around 10 places including the corporate office and not in godown.

Founded over than 30 years back, Sarvana Bhavan currently has its presence across 31 outlets in South India, two in the North and 12 countries with 46 outlets across the globe along with plans for expansion into more countries, says the company website. The company has its branches in various countries including US, Canada, UK, France, Germany, Singapore, Malaysia, Qatar, Kuwait, UAE and Bahrain.