Mumbai:  The Income Tax department on Wednesday conducted searches at the business premises of steel giant Jindal Steel works here for alleged charges of tax evasion.

A team of IT officials from the investigation and tax collection wings reached the premises of the company and began scrutinising documents related to purchase orders and other financial dealings according to the sources.

JSW spokesperson Sharmila Banerjee informed that it’s a part of routine survey being conducted by the income tax department. The department has certain queries and they are fully cooperating with them. The survey is going on only in one office of ours at Lower Parel, Mumbai.

She added that the IT department is also looking at records of the company's recent financial dealings related to diversification according to the sources.

The searches come a day after JSW Steel announced its ambitious expansion plans. With the expansion, the company is all set to become the country's largest steel maker by next month, surpassing state-run SAIL.

As per the new expansion plan JSW would be commissioning an output of 3.2 million tonnes per annum after the new capacity addition in Karnataka.

JSW Steel's Director Marketing Jayant Acharya had told reporters in New Delhi that JSW will be able to produce 14.3 million tonnes per annum (MTPA) steel, 0.4million tons more than SAIL. At present, the company has a steel making capacity of about 7.8 MTPA at its Vijaynagar and Salem units.

It entered into a deal in December to acquire 41.29 per cent stake in loss-making Ispat Industries having a capacity of about 3.3 MTPA. By 2020, the Sajjan Jindal-led company is aiming to produce 34 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.

Recently, JSW had announced plans to set up a new 2.3 MTPA cold rolling mill capacity in two phases at its Vijaynagar plant at an estimated investment of about Rs 4,000 crore. For its proposed 10 MTPA plant at Jharkhand, Acharya said, "We are still looking for land and other clearances and approvals".

 

(Agencies)