The income tax (I-T) department conducted raids on more than 15 premises of Welspun, a home textile multinational company, spread across four states on Thursday.
While most premises to be raided were from Mumbai and Gujarat, where the company has its head office and factories respectively, raids also took place in Delhi and Orissa.
Besides home textile, the Welspun group is also into various other sectors like SAW pipes, yarns, steel, steel pipes, infrastructure, energy, and oil and gas.
According to income-tax officials, the raids were conducted as the department had information about the multinational company allegedly rotating money through a large number of investment companies.
Also, the I-T department suspects that the company has received investments from abroad.
“We are going through records to find out the exact link between Welspun and the investment companies,” said an I-T official, who did not wish to be named.
The official added that the investigation was about how money was channeled between Welspun and the investment companies. The I-T department also scrutinised details of the investment companies involved.
During the raids, authorities found Rs 60 lakh cash from Welspun’s premises in Mumbai and Gujarat.
Officials are now in the process of finding out whether the cash was declared. The raids, which began early in the morning, are expected to continue on Friday.
The I-T officials recovered a large number of documents and computer records, including account details.
“We are going through the documents and records,” said an official, adding that after scrutinising them, the department would be able to find out the extent of tax evasion.
Despite repeated attempts, no official from Welspun could be reached for comment as the raids were on.