IT raids at Balasore Alloys’ offices over tax evasion, company refutes

Balasore: The Income Tax (IT) department raided the office of Balasore Alloys Ltd at Balgopalpur in Remuna block of Balasore district today over suspected tax evasion by the company. The company offices in Kolkata and Mumbai were also raided simultaneously by the IT officials, sources said.

According to sources, two teams of the IT department raided the office of the company in Balgopalpur and inspected many important documents. However, no comments were available from the company officials or the IT department about the seizure of any incriminating documents on tax evasion by the company during the raid.

Earlier in December 2017, the Enforcement Directorate (ED) had seized immovable assets worth Rs 244.89 crore of the company. The company’s shareholders – Global Steel Holding Ltd (GSHL) and its former chairman Pramod Kumar Mittal were probed by the ED for defrauding the State Trading Corporation of Rs 2,112 crore. An FIR in this regard was registered by CBI on March 16, 2017 followed by a money laundering case by ED on March 29, 2017.

(Update after response from company officials on February 12, 2019)

Meanwhile the company officials, on February 12, 2019, came out with a clarification saying “The ED has not seized any of our assets at any point of time and had merely provisionally attached some of our immovable assets in December 2017 and such provisional attachment had been assailed by us before the concerned forum. In any event, please note that the proceedings relating to the aforesaid provisional attachment have been directed to be closed in terms of an order dated December 6, 2018 passed by the Hon’ble Supreme Court of India.” (sic)

Further clarifying the role of Pramod Mittal, the company said “Pramod Mittal is not our Chairman. Global Steel Holding Limited and Pramod Mittal are minority shareholders of Balasore Alloys Limited, which is a public limited company whose shares are quoted on the Bombay Stock Exchange. We are not concerned with alleged proceedings against them in any manner whatsoever.” (sic)