I-T raids on JSW group yield Rs260 crore: report

The JSW group is reported to have disclosed tax evasion to the tune of Rs260 crore following raids carried out by the income tax authorities at the premises of two group companies.

Income tax authorities have raided the premises of JSW Energy Ltd and JSW Steel Ltd, carrying out search and seizure operations on various locations of the two companies between 16 and 18 March 2011.

Reports say the I-T department was following up alleged bogus capital expenditures reported by the two companies and that the disclosures have been made after questioning of senior management.

However, no cash seizure has been made, reports said.
 
JSW management said the I-T operations were part of a routine survey and not to read too much into it.

"The Income Tax authorities had carried out survey / search and seizure operations on the company at certain locations from 16 to 18 March 2011.

The company has fully cooperated with the authorities and various statements were recorded during the course of these operations.

The material implications, if any, on the company are being assessed, which would be intimated in due course on completion of the process," JSW Energy said in a filing with the Bombay Stock Exchange (BSE).

JSW Steel Ltd also filed a similar release with the BSE today.