Shares of pharmaceuticals maker Alkem Labs tumbled 14 percent to Rs 4,653 in intra-hour trade yesterday on the Mumbai Stock Exchange amid allegations of tax evasion.
This is the lowest price of the company's stock in the last three months. However, the stock price rose to Rs 5,013 by the end of trading hours.
The company's share price fell following reports that the Income Tax department had found the company involved in tax evasion of over Rs 1,000 crore.
The Income Tax department has found that more than Rs 1,000 crore of false income tax deductions have been claimed for the company's manufacturing plants in Sikkim.
Also, it has been discovered that various special sections under the Income Tax Act have been misused to avail such exemptions.
Also, the Income Tax Department's probe found that Alkem Labs paid doctors and medical students to prescribe their company's drugs to patients.
At the end of this investigation, the company is likely to be fined heavily.
Investigation
According to information about tax evasion in Alkem, the Income Tax Department raided its offices in September last year. Following this, affidavits were obtained from the officers of the company. The data were analyzed and an investigation was conducted on the same.
Said thus. In this case, Alkem Labs has denied all these complaints.