I-T raid on HCL Technologies

New Delhi, January 24: | Updated: Jan 25 2002, 05:30am hrs
Shiv Nadar-promoted software services company, HCL Technologies was raided by the Income Tax department on Thursday morning.

According to sources, Income Tax officials, accompanied by security personnel, reached the companys corporate office at Noida near Delhi just a few minutes after the office opened.

All staff in the Noida office was asked to leave immediately and employees were frisked by I-T security staff before they were allowed to go. Sources close to the investigations said the companys offices in Chennai as well as Mr Nadars Delhi residence and the offices of two share brokers were also raided. They said the search was expected to continue late into the night.

Sources told The Financial Express that the raids were conducted to investigate certain financial transactions allegedly carried out by the company and its directors taking the Mauritius route to evade taxes.

Two brokers close to the company are also being questioned. According to our information, these brokers were involved in transactions of some shares of overseas corporate bodies (OCBs) of Mauritius that are closely linked to the company directors and employees, they said.

However, they maintained that the business of the company was not disturbed and only the places where the financial and legal records were kept by the company were searched.

A senior HCL official confirmed the presence of I-T officials at Noida office, but refused to comment on anything further. However, later in the evening the companys PR agency released a statement that said, Officials from the I-T department visited the offices of HCL Technologies Ltd today. The company is providing the necessary information to assist the authorities with their inspections.

The statement also maintained that HCL Technologies had always been committed to ensuring full and complete compliance with the provisions of law and believed that it had always conformed with all statutory requirements under the I-T Act, 1961.