Twin Cities area restaurants, owners convicted of multiple tax crimes
ST. PAUL, Minn. – The Minnesota Department of Revenue announced the convictions and sentencing of Lakhvir Singh Padda, of Medina, Baljit Singh, of Eagan, and Darbar Indian Grill restaurants in Minneapolis and Apple Valley by judges in Hennepin County District Court.
- Mr. Padda pleaded guilty and has been convicted of three felony counts of aiding in the filing of false or fraudulent sales tax returns. He was sentenced to pay over $468,000 in restitution, to 5 years of supervised probation, and to serve 180 days in the Hennepin County Workhouse or in home detention, if eligible.
- Mr. Singh pleaded guilty and has been convicted of two felony counts of aiding in the filing of false or fraudulent sales tax returns. He was sentenced to pay $19,000 in restitution, to 2 years of supervised probation, and to serve 60 days in the Hennepin County Workhouse or in home detention, if eligible.
- Darbar Indian Grill Minneapolis pleaded guilty and has been convicted of 62 felony counts of failing to pay or collect sales tax and was sentenced to pay over $468,000 in restitution.
- Darbar Indian Grill Apple Valley pleaded guilty and has been convicted of 31 felony counts of failing to pay or collect sales tax and was sentenced to pay $19,000 in restitution.
The convictions stem from criminal charges brought in July 2020 alleging that Mr. Padda and Mr. Singh knowingly underreported monthly sales tax collections for Darbar Indian Grill restaurants in Minneapolis and Apple Valley for multiple periods between July 2014 and July 2019.
Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.
Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous.
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