The income tax (IT) department has reportedly carried out searches on premises linked to the Edelweiss group. The IT searches which reportedly were carried out on Thursday, happened in the financial capital, Mumbai.
According to a report in the Economic Times, the income tax searches were also carried out at the premises of certain entry operators along with the Edelweiss group. It adds that the searches were reportedly in connection with the income tax department’s larger action on asset reconstruction companies (ARCs).
Lately, both Mumbai and Delhi’s investigation wings of the income tax department have been looking into the working of ARCs for alleged tax evasions. “There are certain unsecured loans linked to entry operators which the company requires to explain,” ET quoted a source as saying.
The report adds that Edelweiss Asset Reconstruction Company (EARC) is one of the market leaders in the ARC sector with the largest asset under management of Rs 38,700 crore. The same is reportedly sponsored by Edelweiss and CDPQ Private Equity Asia Pte Limited.
The probe into ARCs has been a constant over the last couple of months. Due to alleged tax evasions, since December 2021, the income tax department has conducted several searches at various premises that were allegedly engaging in unfair trade practices in acquiring the non-performing assets (NPAs) from banks.
