DB Corp tanks 10% after I-T department raids

New Delhi: Shares of DB Corp declined as much as 10 per cent during early trade on Monday after the Income Tax department raided offices of the company last week.

"This is to inform you that the officials of Income Tax Department (‘IT department’) have visited the Company's Offices in connection with the search under the relevant provisions of the Income-Tax Act on July 22, 2021," the regulatory filing said.

Company officials are responding to all queries raised by the income tax authorities and the company is lending its fullest cooperation to I-T department officials, the filing added.

Following a probe from the I-T department, shares of the company shed 10 per cent to Rs 90.60 on Monday. The scrip was trading at Rs 91.50 at 9.55 am. The BSE Sensex was trading flat at 52,973.75 at the same time. The counter settled at Rs 100.35 on Friday.

The Income Tax department has claimed to have found 'fictitious transactions' of Rs 2,200 crore after raids at multiple offices of the media group.

Unpaid taxes on Rs 700 crore of income over six years, violation of stock market rules, and evidence of profits being drawn from listed companies have been found in searches at the Dainik Bhaskar Group, the Income Tax Department alleged.

A total of 26 lockers have been found at the homes of the promoters and key employees of the group, the tax department said.