The Income Tax (IT) department conducted coordinated multiple raids and searches at over 50 locations of the largest electrical wires and cables maker, PolyCab India Pvt Ltd, on Friday.
The investigation wing of Income Tax, Mumbai, raided over 23 manufacturing facilities, 25 warehouses, and more than 15 offices, including senior management offices and residences, for alleged tax evasion. The tax officials also visited the offices and residences of managing director Inder Jaisinghani.
Raids based on specific inputs regarding large-scale unaccounted cash transactions
Senior tax officials confirmed that the coordinated search operations at over 50 locations of Polycab India were based on specific inputs regarding large-scale unaccounted cash transactions by the fast-moving electric wire and cable major.
The Mumbai-based market leader in wires and cables manufacturing, Polycab, was previously raided by IT in 2009 following a probe into allegedly inflated expenses at their manufacturing facilities to show reduced profits and misrepresenting revenues to incur fewer tax liabilities.
According to senior tax officials, the searches were ongoing late into the night as IT officials scoured Polycab offices and facilities in Mumbai, Pune, Delhi, Bangalore, Chennai, Surat, Baroda, Secunderabad (Andhra Pradesh), and Kolkata.
Polycab India
The group had reported a loss of Rs 9.26 crore for the year ending March 2023, but the company reported a 59% rise in profit at Rs 426 in September 2023 and an impressive market capitalization of Rs 85,000 crore as of mid-December.
As a market leader in the manufacture and sale of cables & wires (C&W) and fast-moving electric goods (FMEG) products, Polycab India has executed several engineering, procurement, and construction projects. The company operates 25 manufacturing facilities across Gujarat, Maharashtra, Uttarakhand, Tamil Nadu, and Daman.
