I-T Dept searches Parsvnath offices across India

The Income Tax (I-T) department today searched seven offices of Parsvnath Developers. The department also conducted survey in 22 premises of the company at various locations across the country.

“We have done a routine tax enquiry based on some information we had and have seized some documents. There are 100 tax officials involved in this investigation, conducted at Delhi and other regional offices of Parsvnath Developers,” said a source at the I-T Department.

Industry sources said the search was conducted because there were complaints of account discrepancy, money laundering and tax evasion.

“I can confirm that two offices of Parsvnath in Delhi have been sealed and there are simultaneous raids in the regional offices of the builder. I feel that there has been a lot of discrepancies in their accounts,” said a real estate player familiar with the development.

Business Standard tried to contact Parsvnath Developers, but failed to get any response. However, a person associated with the company confirmed the search operation.

In a search conducted under Section 132 of the Income Tax Act, investigators can enter offices and residences anytime and seize documents. It is conducted under a director of investigation or commissioner of Income Tax.

In a survey conducted under Section 133 of the Act, investigators enter premises in normal business hours and can’t seize documents. Also they can’t take any valuables with them unlike in search. This survey is conducted under a joint commissioner or a joint director.

Recently, Parsvnath announced its financial results. Its fourth quarter revenue rose 1,398 per cent to Rs 360.95 crore, compared to Rs 24.09 crore in the year-ago period.

According to its fourth-quarter results statement, the company’s debt declined to Rs 1,417 crore from Rs 1,660 crore a year earlier.