Mumbai: The investigation wing of the income tax (I-T) department in Mumbai on Friday searched the offices of Allcargo Global Logistics Ltd, a Bombay stock Exchange-listed firm.
E.T. Lukose, director, IT investigation, in Mumbai, confirmed the development, but declined to comment on the reasons for the search. “There is a search going on but we cannot divulge details,” he said. At 4:45 pm when Mint spoke to I-T department, the search was still on. Calls and text messages sent to Allcargo chairman and managing director Shashi Kiran Shetty did not elicit any response. A person familiar with the development, who asked not to be identified, said Allcargo is being investigated by the I-T department for alleged land transactions in Gujarat for setting up a port in partnership with a leading financial firm. The person declined to name the firm.
Allcargo, in which private equity fund Blackstone Group LP has a 10.39% stake, is India’s largest multi-modal transport operator and the world’s second-largest non-vessel owning common carrier. Allcargo offers various modes of transportation to carry cargo including machines for big projects.
The company also operates container freight stations across India. In March this year, Allcargo acquired 6.1 million shares, or a 5.97% stake, in rival Gateway Distriparks Ltd for Rs29 crore. Sealand Terminals Pvt. Ltd, a unit of Allcargo, bought the shares in the open market from Temasek Holdings Pte Ltd, the Singapore government’s investment arm. Allcargo shares closed at Rs820 on Bombay Stock Exchange on Friday, gaining 2.65% a piece.