Income Tax Raids Hit Polycab India: 50 Locations Searched in Mumbai

December 22, 2023 Reeti Garg Business, Stock Market 0

The Income Tax Department has launched a massive operation against Polycab India,
The Income Tax Department has launched a massive operation against Polycab India

The Income Tax Department has launched a massive operation against Polycab India, a leading manufacturer of wires and cables, in Mumbai. According to sources, the tax officials raided at least 50 locations connected to the company, including the offices and residences of its top executives. The raids are reportedly based on some inputs about tax evasion and undisclosed income by the firm.

The tax department has not issued any official statement on the matter yet. Polycab India is one of the largest players in the wires and cables industry in India, with a market share of over 18%. The company also deals in electric fans, switches, LED lighting, solar products and pumps.

It has a network of over 3,300 distributors and 1.25 lakh retail outlets across the country. The company reported a revenue of Rs 8,871 crore and a net profit of Rs 707 crore in the financial year 2019-20.

Reasons for the Raids Remain Unclear

The exact reasons for the raids remain unclear, and the Income Tax Department has not issued any official statement yet. However, sources speculate that the searches might be related to alleged tax evasion, financial irregularities, or hawala transactions.

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Polycab India Shares Take a Hit

Following the news of the raids, Polycab India’s shares on the Bombay Stock Exchange (BSE) fell by over 5% in early trading. The stock price later recovered somewhat but closed the day 3.2% lower.

Previous Allegations Against Polycab India

This is not the first time Polycab India has faced scrutiny from the authorities. In 2017, the company was accused of overvaluing its inventory and manipulating its financial statements. However, the company denied the allegations and no further action was taken.

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About Reeti Garg 357 Articles
Being outstanding in school and college for her academics and sports, little did she know that her passion for writing about unobserved people, stranded things and mysteries of the heart would lead her to become a professional writer later in life! An avid reader and a hardcore movie buff, her favorite past time is listening to music and writing poems. She is a published author and on her way to completing her second book ‘Under the Falling Stars’, a thriller on bisexuality. In this short span of 4 years of being a professional writer, she has been associated with many articles for renowned magazines and newspapers, blogs, short stories and poetries. Names associated with her writing skills are ‘Meri Sajni’, ‘Akinchan Bharat’, ‘Hamara Ghaziabad’, mycity4kids.com. Aspiring to be famous and known as a soulful author one day, she would love to settle someday in the silent disquietedness of London countryside, where she plans to just sip coffee and keep writing trilogies.