BackI-T carries out raids on Bengaluru-based pharmaceutical group. Read here
The IT department mentioned that the quantum of tax sought from the Bengaluru-based pharmaceutical group to be evaded is estimated at over ₹300 crore
PremiumThe Income Tax Department has confirmed that on 6 July, they conducted a search and seizure operation a major Bengaluru-based pharmaceutical group. Reports had emerged on the same date that IT-raids were conducted on the premises of Micro Labs Ltd, the manufacturers of Dolo-650 tablet that was widely used by Covid-19 patients during the last over two years, on charges of alleged tax evasion.
The IT department mentioned that the quantum of tax sought from the Bengaluru-based pharmaceutical group to be evaded is estimated at over ₹300 crore. The statement further stated that Bengaluru-based pharmaceutical group has presence in over fifty countries.
Officials said the department looked at financial documents, balance sheets and business distributor networks of the company as part of the searches. It had been reported that a team of more than 20 officers attached to the I-T department conducted the raids on the office of the Bengaluru-based pharmaceutical company located on the Race Course Road
The company said on its website that it was engaged in the making and marketing pharmaceutical products and APIs (Active Pharmaceutical Ingredients) and has 17 manufacturing units across the country apart from conducting business overseas.
Its major pharma products are Dolo-650, Amlong, Lubrex, Diapride, Vildapride, Olmat, Avas, Tripride, Bactoclav, Tenepride-M and Arbitel.
Dolo-650, an analgesic (pain killer) and antipyretic (fever-reducing) was being prescribed by doctors and medical shop owners for coronavirus patients to reduce pain and fever, common symptoms caused by Covid.
In the words of the company, Dolo-650, is "virtually a household name across the country". The company has struck gold in successive waves of Covid-19 pandemic. The company has sold 3.5 billion tablets since the Covid-19 outbreak in 2020 and earned revenues of ₹400 crore in a year crushing all rivals, sources said. The sales of Dolo pill broke all records.
The company website showcased a news article, published in February, on its website that said: "The company has sold 350 crore tablets (of Dolo-650) since the Covid-19 outbreak in 2020, and earned revenues of ₹400 crore in a year."
The CMD of the company, Dilip Surana, has been quoted in the story.
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