Shree Cements Issues Clarification on Reports Of Tax Evasion Of ₹23,000 Crore; Says Survey Still Ongoing

Tax evasion of Rs 23,000 crore has been found in tax searches at multiple locations of Shree Cements Limited in Rajasthan. The tax searches against the company, which is one of India's top three cement producers, continued for the second time this week.

The raids took place at the company's bases in Beawar, Jaipur, Chittorgarh and Ajmer.

Forged documents recovered in raid

According to a report by NDTV this is one of the biggest tax evasion to date. The report claiming sources also says that tax officials have recovered forged documents related to tax evasion of Rs 23,000 crore.

However, the company in an exchange filing on Saturday said, "We have gathered that a lot of negative information about the company and its officials is floating in certain sections of the media in connection with the above survey. We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company."

NDTV's report claims that the deductions claimed by the Kolkata-headquartered company are false. The company has siphoned close to Rs 1,200 to Rs 1,400 every year in tax evasion and the government has incurred huge loss due to fake agreements.

The searches have also revealed huge irregularities in coal and payments made for it.

Shree Cements shares

The shares of the company fell 2.7 per cent after reports on the raids came out. This is the biggest intraday percentage drop since May 24 Shree Cements. On Friday the company's shares closed at Rs 25,159.55, down by 1.94 per cent. In the last five days the company's shares have seen a drop of 4.48 per cent.

Published on: Sunday, June 25, 2023, 10:56 AM IST