Mumbai: Investigators from the income tax (IT) department in Mumbai on Wednesday searched the offices of JSW Steel Ltd and JSW Energy Ltd for alleged evasion of income tax.
“There is a search going on but we cannot divulge details,” said B.P. Gaur, director general, IT investigation, Mumbai. The search operation is expected to continue till evening, he said.
The investigative agency began its operation early morning at the Mumbai and Rajasthan office of JSW Group.
JSW Energy’s stock price fell after rising by 0.55% to Rs72.55 a share and JSW Steel’s stock rose by 0.15% to Rs910.50 a share at 2.20 pm on the Bombay Stock Exchange.
The firms have allegedly adjusted accounts to reduce tax liability, another tax official said on condition of anonymity.
Calls made to Seshagiri Rao, group chief financial officer, JSW Group, went unanswered.
Confirming the raid in Mumbai’s Lower Parel office, Sharmila Banerjee, spokesperson for the JSW group, termed the raids as a routine survey. “It is part of the usual survey, and apart from that, there are no more details we have,” she said.
Incorporated in 1994, JSW Energy is into generation, transmission, distribution and trading of power. The company provides power solutions to Karnataka, Maharashtra, Rajasthan and Himachal Pradesh.
JSW Steel, the flagship of the JSW Group, is a steel maker. The company recently bought over a 41.29% controlling stake in loss making Ispat Industries Ltd.