I-T Raids Found ₹1000 Crore Cash In Polycab Premises, Shares Drop By 20%

The shares of Polycab India Ltd have taken a significant hit, falling by 20% after a raid at its 50 locations. The Income Tax Department conducted searches at multiple locations related to Polycab. During these searches, they uncovered some startling findings. 

It has come to light that the electrical company had engaged in unaccounted cash sales amounting to a whopping Rs 1,000 crore. Shockingly, these sales were not recorded in the company’s official books of accounts.

Furthermore, the Income Tax Department also discovered evidence of unaccounted cash payments exceeding Rs 400 crore. These payments were made by a distributor on behalf of Polycab for purchasing raw materials. These findings have raised serious concerns about the company’s financial practices.

The search operation covered over 50 premises across various cities, including Mumbai, Pune, Aurangabad, Nasik, Daman, Halol, and Delhi. During these searches, a substantial amount of incriminating evidence, including documents and digital data, was seized.

Preliminary analysis suggests that Polycab may have engaged in unaccounted cash sales, cash payments for undisclosed purchases, and other non-genuine expenses, all aimed at reducing their taxable income.

Additionally, it was discovered that certain authorized distributors were involved in issuing bills without actually supplying goods, inflating purchase accounts by approximately Rs 500 crore. This distributor exclusively dealt with Polycab products.

In the course of these searches, unaccounted cash exceeding Rs 4 crore was seized, and more than 25 bank lockers were put under restraint.

This development has caused a significant drop in Polycab’s stock prices, leading to a 20% decline in its share value. It’s a matter of concern for investors and stakeholders of the company.

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The Income Tax Department’s findings have raised questions about Polycab’s financial practices, and this has had a considerable impact on the company’s stock prices. The situation is still evolving, and further investigations are expected to shed more light on this matter.