The Income Tax Department conducted five-day raids on India Pesticides Limited (IPL) across 25 locations starting December 12. These searches occurred at the company’s offices, factories, and premises in cities like Lucknow, Noida, Mumbai, Bareilly, and Hardoi. According to NavBharat Times, the raids revealed tax evasion and other financial irregularities worth Rs. 300 crore.
Bogus Companies and Fake Transactions
Sources claim that IPL’s directors created fake companies in Kolkata to show false transactions and avoid paying taxes. Investigators also found that the company misused Tax Deducted at Source (TDS) rules to fraudulently withdraw advance tax payments.
Cash Recovery and Questioning
During the raids, officials reportedly found crores of rupees in cash. Directors of the company, including Madhu Dixit, Anand Swaroop Agarwal, Mohan Vasant Taksale, Adesh Kumar Gupta, Rahul Arun, Vishal Swaroop Agarwal, Vishwas Swaroop Agarwal, and Rajendra Singh Sharma, are being questioned about the source of this cash and the fake transactions.
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IPO Funds and Tax Issues
The investigation also focused on IPL’s Initial Public Offering ( IPO ) from three years ago, through which it raised Rs. 700 crore. The company was supposed to pay Rs. 100 crore in taxes on these funds. The company initially deposited this tax but it allegedly withdrew the amount later using false TDS claims.
Authorities are now trying to find out how the Rs. 700 crore raised from the IPO was used and where the money was invested. They are also checking the properties owned by the company’s directors to trace any missing funds.
Details of the Raids
The operation was carried out by 60 Income Tax officers supported by security teams. The raids were conducted in multiple cities, including the company’s corporate office on Water Works Road in Aishbagh, Lucknow, and its factories in Chinhat and Sandila (Hardoi). Offices in Noida and Mumbai were also searched.
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Major Findings
Over five days, officials found several irregularities in IPL’s income tax returns from previous years. These findings confirm suspicions of systematic tax evasion by the company. The investigation is ongoing, and the company may face severe financial penalties and legal consequences for its actions.
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