The Income Tax Department on Friday conducted raids on premises linked to the Mumbai-based Kalpataru builders over alleged tax evasion. The raids were conducted on around 30 premises across four states. Significantly, the residences of Kalptaru group founder Mofatraj Munot and MD Parag Munot were also raided by the tax department. Shares of Kalpataru Projects International, which is a part of Kalpataru Group, fell as much as 3.6 per cent following the report. According to Deccan Herald, the search sites include the residences of group founder Mofatraj P Munot and Managing Director Parag M Munot.
A source quoted in the report said that the misappropriation of funds of "hundreds of crores" have been uncovered. In May this year, Kalpataru Power Transmission announced changing its name to Kalpataru Projects International. The name was changed after the receipt of approvals from shareholders and regulatory authorities including the Ministry of Corporate Affairs.Earlier, Kalpataru Projects International arm Kalpataru Power Do Brasil Participaes Ltda. (KPBPL) has completed the acquisition of a 100 per cent equity stake in Fasttel Engenharia S.A., Brazil. Earlier in 2021, the KPBPL had acquired a 51 per cent stake in Fasttel along with management control.