A team of the Income Tax (IT) Department’s Investigation Wing from Mumbai conducted raids at Sanvijay Rolling and Engineering Limited, located at Great Naag Road, Ganeshpeth, on Tuesday. Its subsidiary Varron Autokast Limited too was raided by the IT sleuths. Officials in IT Department confirmed the raid at multiple locations and stated that they scrutinised financial records, banking transactions, and details related to the plant sales as part of the ongoing investigation.

 

The focus on plant sale transactions points to the department examining the financial trail around the Varron Autokast acquisition and related dealings, which is an area where large-ticket industrial transactions can sometimes involve undisclosed payments or underreported consideration values, said the official. The company is owned by Sanjay Puranlal Agrawal, a resident of Bhagwaghar Layout and his brother Ajay Puranlal Agrawal, a resident of Ambazari road.

 

The company had recently sold two of its plants in Chandrapur, while another plant in Nagpur is also believed to have been sold. The IT officials are investigating tax evasion and financial irrgularities in the transactions. It may be mentioned here that Sanvijay Rolling and Engineering Limited is a Nagpur-based steel conglomerate, operating six rolling mills at Hingna and Butibori MIDC with a revenue of Rs 2,099 crore in FY24. Varron Autokast Limited, acquired by Sanvijay in May 2022, is an aluminium and steel manufacturer situated on an 85-acre facility on the Nagpur-Hyderabad highway, supplying to the defence, automotive, and construction sectors. Sources claimed that with the financial year ending March 31, the IT Department’s investigation wing has been intensifying enforcement action across multiple cities in the final weeks of the fiscal year a pattern seen annually as the department looks to close consequential cases before books close.