Waaree Energies Under Investigation by Income Tax Department

Waaree Energies Ltd. confirmed on Tuesday that its offices and facilities are currently under investigation by the Income Tax Department of India. The inquiry is being conducted under the provisions of the Income Tax Act, 1961. The company stated in a filing with the stock exchange that it is fully cooperating with the officials involved in the proceedings.

The investigation reportedly involves a large-scale ‘search and seizure’ operation executed by around 25 teams from various locations, including Mumbai, Chikhli, and Vapi. The operation began at the company’s significant 5.4 GW solar cell gigafactory situated in Chikhli. According to industry observers, the scale of the operation is described as “unprecedented,” indicating the extensive information the Income Tax Department possesses and the seriousness of their inquiry.

As part of the operation, officials are also reported to have searched the residences of Hitesh Doshi, the Chairman and Managing Director of Waaree Energies, as well as his brother, Kirit Doshi, in Vapi. Sources familiar with the investigation have indicated that the primary focus is on reviewing financial records, transactions, and any irregularities associated with the company’s operations and expansion activities. The investigative teams are examining a range of materials, including digital records, documents, and asset information.

In financial markets, shares of Waaree Energies closed at Rs 3,281.90 on the National Stock Exchange, reflecting a decrease of 0.39%. This decline occurred against a backdrop of a 0.4% drop in the benchmark Nifty index. Despite the current investigation, Waaree Energies has seen a year-to-date stock increase of 14.97%.

An analysis of the company’s performance by Bloomberg reveals that among ten analysts tracking Waaree Energies, seven have rated the stock as a ‘buy,’ while three have recommended a ‘sell.’ The consensus among analysts suggests a potential upside of 10.3% based on the average 12-month price target.

The ongoing investigation raises significant questions about the company’s financial practices and future operations. Stakeholders and investors will be watching closely as further developments unfold in this high-profile case.