I-T department raids Bengaluru-based Sobha Developers for tax evasion

Amid the ongoing series of raids, the Income Tax department (I-T) on Monday conducted raids at around five places in Bengaluru on offices belonging to real estate and stock market-listed company Sobha Developers. According to sources, at least 50 IT officials divided into five teams raided the offices of Sobha Developers at Hoodi, Bannerghatta and three other locations. 

It has been reported that the I-T officials from Bengaluru and Chennai conducted the raids in connection to alleged tax evasion by the builder. The I-T officials left the offices of Sobha Developers in the evening after conducting the raids for hours. Following the raids, the officials also seized several documents pertaining to tax evasion from the premises belonging to the real estate company.

Reportedly, the officials and employees of the company were not allowed to enter or leave the office building till the time the IT officials completed their raids. Search operations were also conducted on the business premises of Sobha Developers for alleged non-disclosure of income, revealed sources. 

The search operations were also conducted at the headquarters at Sarjapur and three factories that the company operates near Jigani on the outskirts of Bengaluru. These factories manufacture wood, aluminium, and concrete products for the developer’s real-estate projects.

Notably, following the news of I-T raids on the premises of Sobha Developers, its shares fell drastically on Monday causing a huge loss to the company. Earlier in January, the company made headlines after the Bengaluru Municipal Corporation termed their project illegal after it allegedly gained approval for the project by producing fake documents. 

Sobha developers is a real estate company that constructs and develops residential and commercial properties. Apart from this, the company is also involved in the business of money lending in Bengaluru and Karnataka and has overseas presence in countries like Dubai as well.