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The Income Tax (I-T) department has raided 12 Housing Development and Infrastructure (HDIL) premises, reports CNBC-TV18 quoting sources. The raided premises include residences of two HDIL directors. HDIL’s shares dropped 3.85% on the Bombay Stock Exchange on Thursday to Rs308.65. The benchmark 30-stock Sensex rose 0.21% to close at 16,216.86 points. HDIL is listed on both the BSE and the National Stock Exchange (NSE).

The search began at 8:30am at the firm’s corporate offices in Mumbai. A senior IT official confirmed the development but declined to disclose the findings of the search. “The search and survey pertain to tax evasion issues related to the real estate and infrastructure sector,” he said, adding that the search would continue on Friday. He declined to be identified.

Hariprakash Pandey, deputy general manager (finance) of HDIL also confirmed that the searches had been conducted. “It is a normal income tax search on the corporate offices of HDIL and the officials are checking the books of accounts of HDIL.

HDIL had earlier raised Rs1,698 crore through a qualified institutional placement or QIP, in which shares are placed privately with potential institutional buyers such as banks. HDIL cut its debt to Rs2,900 crore at the end of June from Rs4,143.31 crore at the end of March.

Sources said the department has recovered unaccounted cash of Rs 1.54 crore so far.

HDIL has been claiming excess expenses and undermining profits, it has been alleged. Over 100 I-T department officials were involved in the raids today, sources said.

More than Rs 300 crore of unaccounted income has so far been unearthed by the tax department in 2009 and in the latest case it almost seems like a thriller of sorts. At around 8:30 am with synchronised watches, more than 100 IT department officials began their raid on 12 of HDIL’s premises. Two premises were residential premises of directors and 10 business premises.

What were the charges? According to sources, the IT department alleges that HDIL has suppressed its profits by claiming excess expenditure. So, in short in a nutshell, the IT department has alleged tax evasion against HDIL. These raids, which began in the morning, were mostly based around the Bandra area and we also understand that there was another small player – Seaside Developers – based in Kandivli, who is also under the scanner of the IT department as far as the entire investigation is concerned.

So, as of now what we understand from sources is that Rs 1.5 crore of unaccounted cash has been unearthed during the raids on HDILs premises that were conducted this morning. This is the amount that has been unearthed so far. It is a developing story and we also understand that this would be a two-day raid and by tomorrow evening we will get a clearer picture.

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