Polycab India saw its shares fall more than 22% in the morning trade on Thursday after the Income Tax (I-T) department detected “unaccounted cash sales” of about Rs 1,000 crore after its recent raids to search the company’s offices.

Shares of Polycab India hit an intraday low of Rs 3,801.00, down 22.6% from its previous closing price on the National Stock Exchange (NSE). At 11:20 am, the stock was trading 18.1% lower at Rs 4,020.40.

The administrative body for the income tax department, Central Board of Direct Taxes (CBDT), said on January 11 that “Credible evidences recovered during the search have established that the flagship company has made unaccounted cash sales of around Rs 1,000 crore which are not recorded in the books of accounts.” 

The income tax department searched 50 premises of the company in Mumbai, Pune, Aurangabad, Nashik in Maharashtra, Daman, Halol in Gujarat, and Delhi. 

The CBDT alleged that the preliminary analysis of the “incriminating” evidence in the form of documents and digital data seized during the raids revealed that the cables and wires manufacturer indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc. for suppression of its taxable income.

According to a statement by the CBDT, unaccounted cash of more than Rs 4 crore was seized, and more than 25 bank lockers were put on restraint after the searches were launched against the group on December 22 last year.

In an earlier exchange filing, Polycab India issued a clarification to stock exchanges, calling the reports of “tax evasion by the company” as “rumours”.