I-T raids on Sterlite

The raids in Delhi, Patna, Pune, Bangalore and Tuticorin, apart from Mumbai and Calcutta, covered residential premises also, seven of them in Mumbai. A large number of documents were seized. Though the scrutiny of the documents is on, any concrete facts will be available only tomorrow.

The Sterlite scrip closed at Rs 400.70 on the BSE today after touching a high of Rs 437. The news of the raids seemed to have dampened the mood. It closed at Rs 427.50 yesterday,revealing a 6.27% difference today.

Senior income tax officials said that raids were carried out simultaneously in 14 cities that included the corporate office at Dhanraj Mahal in Mumbai, and regional offices in Delhi, Pune, Calcutta and Bangalore, among others. Residences of some senior Sterlite officials were also raided as part of the exercise. Chairman and MD Anil Agarwal and chief financial officer Tarun Jain had both left for London this weekend, company officials said, and are expected back later this week.

A senior income tax official said charges that were being drawn up against Sterlite and its promoters – the Agarwals – included evasion of tax and suppression of sales figures. He did not wish to put a figure to amount involved "at this stage". Sterlite had announced on Tuesday that it was taking a controlling stake in India Foils from the Khaitans of Williamson Magor, a move that will catapult it to the position of the country’s largest foils maker. It is not the first time that Sterlite isfaced with a major controversy.