Tax at Ruia Group Tyre Companies under Investigation

An article published by the Indian business daily Mint indicates that three tyre companies owned by Ruia Group chairman Pawan Kumar Ruia are being investigated for tax incongruities. The probe is focusing upon the presence of “hawala” activities, a name given to the transfer of money in order to avoid taxes without a corresponding physical or electronic transfer of funds. The companies under investigation are Dunlop India Ltd, Falcon Tyres Ltd and Monotona Tyres Ltd.

The investigation branch of the Maharashtra sales tax department began its enquiry in January and the sales tax liability on the companies is Rs 230 million (£3 million). This figure may increase, however, as the matter is still under investigation. On January 15 the branch raided the Mumbai premises of Adhirath Commercial Pvt. Ltd, a building that houses five Ruia Group companies, however specific details regarding this operation have not been divulged.