Ruchi Soya faces heat from taxman

Ruchi Soya Industries Limited, India's largest producer of edible oils and maker of best-selling soya brand 'Nutrela', came under the scanner of income tax authorities for alleged tax evasion on Tuesday, two individuals familiar with the development told ET NOW. ET NOW was the first to report the development. " The investigative wing of the income tax department in Mumbai has conducted extensive search and survey operations on nearly 35 official and residential premises of Ruchi Soya and related entities. More clarity should emerge on the outcome of the probe in the next 24-48 hours, " said one of the two individuals cited above. The search operations, the fifth so far by the Mumbai investigative wing in 2013, cover Mumbai and Indore while surveys are being carried out in Delhi, Gurgaon and Thane , sources added.

When contacted, a Ruchi Group spokesperson said, " As a company with a global presence, Ruchi Group consistently fields a large number of tax queries, audits and assessments. The group's commitment to being a good corporate citizen is firm and unwavering. Our company has always observed the highest ethical and compliance standards. This is a routine audit by the income tax authorities and we are co-operating with the authorities fully." IT dept sources claimed on the other hand that the senior management was unavailable for recording of statements during Tuesday. The company's stock slipped by 2% at the end of day's trade.

The income tax department has come under pressure recently as the government's gross direct tax collections grew only by 8 per cent in the April to December 2012 mop up. Sources indicate that a growth of nearly 15% would be required to meet the government's budget target of 5.70 lakh crore rupees for the current fiscal.