Shares of Shree Cement tanked as much as 10% in early trade on Monday after Income Tax (IT) officials alleged that the company evaded Rs 23,000 crore. 

According to a media report, IT officials conducted tax searches at the company’s offices in Beawar, Jaipur, Chittorgarh and Ajmer in Rajasthan. They seized documents indicating one of the biggest tax frauds to the tune of at least Rs 23,000 crore, as per the report. 

At noon, the shares of Shree Cements were trading at Rs 23,170 on the National Stock Exchange (NSE), 7.86% lower than the closing price on Friday. The stock also hit an intraday low of Rs 22,605.60 in the early opening hours.

The raids came after IT Department officials doubted the tax deduction claims of the group. The scrutiny of the documents revealed that the company siphoned off Rs 1,200-1,400 crore every year in taxes. 

The IT officials found huge irregularities in the accounts of coal purchased for cement production and the payment made. It was also reported that the sarpanch, gram panchayat, and the local bodies Centre made “fake agreements”, incurring further losses to the central and state governments.

On Sunday, Shree Cements officials clarified that the IT department was conducting a survey at its premises, and the company’s management team was available and extending full cooperation to the officials.