Tax raids over 50 locations of Polycab India in Mumbai

Income Tax teams launched a widespread raid on December 22, 2023, in Mumbai at over fifty locations of Polycab India, the country's largest electrical wires and cables manufacturer. The raids, spanning Mumbai, Pune, Delhi, Bangalore, Chennai, Baroda (Gujarat), Secundrabad (Andra Pradesh), and Kolkata, targeted various offices, residences of top management, warehouses, and manufacturing facilities.

This move comes as a major action by the Income Tax department, echoing a similar incident in 2009 when Polycab faced scrutiny for allegedly inflating expenses at their manufacturing facilities to reduce profits and manipulate revenues for lower tax liabilities. Despite the extensive searches, Polycab India has not issued any official statement or comment regarding the raids as of now.

 The Income Tax department's action took a toll on Polycab India's financial standing, with company shares witnessing a sharp decline of over 3%. Investors reacted swiftly to the news of the raids, reflecting concerns about the potential impact on the company's operations and financial stability.

Investigations are still ongoing, and further details about the nature of the alleged irregularities are yet to be disclosed by the authorities. The market awaits updates on the situation, and stakeholders are closely monitoring the developments surrounding Polycab India.