Officials of the Income Tax department are conducting surprise raids at the recently-inaugurated outlet of Malabar Gold and Diamonds in Coimbatore. According to sources, more than 40 income tax officers have been involved in the searches which began at around 7 am on Tuesday. The raids are being carried out based on information relating to alleged tax evasion by the company last year.
Around five outlets of the jewellery store are being raided, including the one on 100 Feet Road in Coimbatore as well as the jewellery manufacturing unit of the organisation located in Athupalam, Coimbatore.
The four-storeyed store on 100 Feet Road in Coimbatore was inaugurated after renovation in November last year. Following the I-T raids, the store has reportedly instructed its employees to not come for work on Tuesday.
Malabar Gold and Diamonds began operations in 1993 in the city of Kozhikode, Kerala and has since grown to become one of the leading brands of gold jewellery across India. It boasts of over 250 retail outlets and 13,000 employees across 10 countries. The group also has its own centres for the design of jewellery, manufacture and distribution.
While the headquarters of Malabar Gold and Diamonds is in Kozhikode, its corporate office is located in Dubai. Malabar Gold and Diamonds is also endorsed by leading actors including Kareena Kapoor, Dulquer Salman, Tamannah and Suriya.
These raids come after the I-T department searched over 70 locations related to Saravana Stores and Lotus group in Tamil Nadu in January. The raids were initiated after the Income Tax department got a tip-off about tax evasion by rigging the accounting software.
(This is a developing story)
(Inputs from Sudhakar Balasundaram)