Mumbai, December 22, 2023: In a significant development, Income Tax department officials conducted raids at over fifty locations of Polycab India, the country’s largest electrical wires and cables manufacturing company, on Friday morning. The operations extended to the offices and residences of top management in Mumbai, including warehouses and manufacturing facilities.
This is not the first time that Polycab has come under the scrutiny of the Income Tax department. In 2009, the company faced an investigation related to inflated expenses at its manufacturing facilities, aimed at portraying reduced profits and manipulating revenues to lower tax liabilities.
The current searches are spread across multiple cities, including Mumbai, Pune, Delhi, Bangalore, Chennai, Vadodara (Gujarat), Secunderabad (Andhra Pradesh), and Kolkata. The coordinated efforts by Income Tax officials are reportedly based on specific information regarding large-scale unaccounted cash transactions by the leading electric wire and cable manufacturer.
As of now, there has been no official statement or comment issued by Polycab regarding the raids.
The news of the Income Tax raids had an immediate impact on Polycab India’s shares, which fell by over 3 per cent following the announcement. Investors and market analysts are closely monitoring the situation, with concerns rising about the potential consequences for the company’s financial health and market standing.
Polycab India, headquartered in Mumbai, has been a market leader in the wires and cables manufacturing sector. The current investigation raises questions about the company’s financial practices and compliance with tax regulations. The authorities are expected to release more details as the investigation progresses, shedding light on the nature and extent of any alleged financial irregularities.