The Income Tax (I-T) Department is conducting searches at premises linked to the Embassy Group in Bengaluru and Gurugram for alleged tax evasion, CNBC-TV18 reported on June 1.
The department is also conducting searches at Indiabulls Realty’s premises in Mumbai’s Bandra-Kurla Complex (BKC) area following the company’s merger with Embassy, the channel added.
More details are awaited.
Embassy Group said this is a "routine income tax enquiry," adding: "Embassy Group has always acted and will continue to act in accordance with the provisions of all applicable laws and regulations, while maintaining the highest standards of corporate governance." We have extended our complete compliance to the relevant authorities. We would like to assure our stakeholders that business continues as usual."
This is not the first corporate biggie the I-T Department has gone after. Since March, I-T sleuths have been on a sweeping crusade.
On March 22, officials raided offices of the Hiranandani Group at 24 locations in Mumbai, Chennai, and Bangalore, including a senior official’s residence, for 24 hours.
Then, from March 23-29, I-T officials raided about 25 premises of Hero MotoCorp, including at offices and residences of senior management (Hero MotoCorp Chairman and MD Pawan Munjal’s office and residence) in Delhi, Gurgaon, and other parts of North India.
Prior to that, on March 20, officials said they had detected undisclosed income of about Rs 224 crore after they recently raided a pan-India unicorn start-up group, involved in wholesale and retail of construction materials, based in Pune and Thane in Maharashtra.
From March 9 to 12, officials from the department also raided the offices of Infra.Market, one of India's fastest growing unicorns, and the residences of its Mumbai-based founders, Souvik Sengupta and Aaditya Sharda.
However, the 72-hour search, spread across Thane, Bengaluru, Hyderabad and Noida, however ultimately had little to write home about. Two people told Moneycontrol that several startups have received notices from the tax department over that fortnight.
The latest was a May 26 I-T raid on 35 premises across Gujarat including those of Asian Granito. The raid by the tax authority comes days after the company completed land acquisition for all three of its greenfield manufacturing plants in Morbi, Gujarat.