Income-tax dept raids ABG Shipyard’s offices

Income-tax dept raids ABG Shipyard’s offices

Mumbai: The Income Tax Department on Wednesday raided offices of ABG Shipyard Ltd, India’s largest shipbuilder, for alleged tax evasion.

“The department is searching the premises of ABG Shipyard in Mumbai and Surat for possible tax evasion. The search began this morning," an IT department official said, without elaborating.

ABG Shipyard executives were not available for comment through the day despite repeated attempts.

Shares of the firm on Wednesday fell 3.69% on the Bombay Stock Exchange to close at Rs212.75. The benchmark Sensex index fell 0.90% to close at 16,806.66 points.

The firm is in a bidding war to acquire a controlling stake in India’s leading offshore services company,

Great Offshore Ltd, and currently holds a 8.29% in that company.

ABG Shipyard rival Bharati Shipyard Ltd

is leading the race with a 22.48% stake in Great Offshore.