The income tax officials in India launched search operations on the business premises of Sobha Developers, one of the leading real estate developers in the country, for alleged non-disclosure of income. The firm is the sister of a UAE-based firm with a similar name founded by the same individual.
The search operations began on Monday and were conducted at the company’s headquarters at Sarjapur in the city, and three factories that the company operates near Jigani on the city’s outskirts, media reports said.
These factories manufacture wood, aluminium, and concrete products for the developer’s real-estate projects.
Media reports, quoting a company spokesperson, said its officials were cooperating with the income tax officials.
The tax raid impacted the Sobha Ltd shares on the Indian stock exchanges, falling nearly five percent on Wednesday, March 22, after the real estate developer informed exchanges about the development.
Troubles have been mounting for the developer in India for some time, with Karnataka’s Bruhat Bengaluru Mahanagara Palike (BBMP) reportedly cancelling the Occupancy Certificate (OC) of the 2,000-unit Sobha City apartment in the city’s Thanisandra Main Road in January.
The cancellation was based on the allegation that the apartment builder had submitted a fake no objection Certificate (NOC) of the Fire Department.
In December, the Indian investigation agency – the Enforcement Directorate – had reportedly attached Sobha’s land assets in Kerala worth $24.2 million Rs 2.01 billion) under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
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