Income Tax Department Conducts Search at Registered and Branch Offices of Prestige Group
Prestige Group is one of India’s most prominent real estate entities, spanning operations across key Metropolitan cities in the nation.
The Income Tax Department of India has launched a search operation at the registered office and branch offices of Prestige Estates Projects Limited (Prestige Group), real estate giant in India. The search, which began on February 25, 2025, was confirmed by the company in a regulatory filing. Want a deeper insight into the Income Tax Bill, 2025? Click here Prestige...
The Income Tax Department of India has launched a search operation at the registered office and branch offices of Prestige Estates Projects Limited (Prestige Group), real estate giant in India. The search, which began on February 25, 2025, was confirmed by the company in a regulatory filing.
Want a deeper insight into the Income Tax Bill, 2025? Click here
Prestige Group, headquartered in Bengaluru, is one of India’s leading real estate developers, commanding a strong presence in the residential, commercial, retail, and hospitality sectors. The company is also engaged in the development of townships, apartments, luxury villas, office spaces, and retail properties across multiple cities, including Bengaluru, Delhi-National Capital Region (Delhi-NCR), Chennai and Mumbai.
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The search operation comes at a time when Prestige Group has reported a significant decline in financial performance. The company’s consolidated net profit for the third quarter of the financial year 2024-25 (Q3 FY25) dropped by 84.8%, falling to ₹17.70 crore (₹177 million) compared to ₹116.30 crore (₹1.16 billion) in the same quarter last year. Revenue also saw a 7.9% year-on-year (YoY) decline, dropping to ₹1,654.50 crore (₹16.54 billion) from ₹1,795.80 crore (₹17.95 billion).
Despite this downturn, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 7% to ₹590.10 crore (₹5.90 billion), with profit margins improving to 35.7% from 30.7%, indicating operational efficiencies.
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Earlier this month, Prestige Group announced plans to launch ₹30,000 crore (₹300 billion) worth of housing projects in the fourth quarter of FY25 (Q4 FY25), spanning key metropolitan markets such as Bengaluru, Delhi-NCR, Chennai, and Mumbai. These new launches are expected to help the company recover from recent financial pressures.
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While the exact reason behind the Income Tax search remains undisclosed, it is believed to be linked to financial and tax compliance matters, Prestige Group has maintained that it is entirely cooperative with the authorities and provides all necessary information and support. However, the details of the investigation and any potential financial or operational implications remain uncertain at this stage.
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