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Rediff News  All News  » Business » Suzlon survey indicates Rs 700-1,000 cr irregular claims: IT dept

Suzlon survey indicates Rs 700-1,000 cr irregular claims: IT dept

April 08, 2006 12:36 IST

Preliminary estimates put forward by the income tax department after Wednesday's survey on Suzlon Energy's offices in Pune and other locations indicated irregular claims in the range of Rs 700-1,000 crore (Rs 7-11 billion), income-tax department officials said in Pune.

SK Sharma, director-general of income tax (investigation), Pune, told reporters that the department was conducting surveys on every windmill installation in Maharashtra.

He said the exact mismatch in claims was being investigated. The operation will include investigation of clearance certificates issued by state electricity board authorities, as some certificates for power installed were for more than actual grid capacity.

He also said the department might conduct an investigation into the application and allotment procedure followed by Suzlon Energy for its recent initial public offer.

A Suzlon spokesman said he was unaware of any probe into the company's IPO. The company's shares ended 3.55 per cent down at Rs 1,357.65.

In a media statement, Suzlon said, "Our understanding leads us to believe that, as many times in the past, the situation is a result of unfortunate misunderstandings of the wind energy industry."

"Accelerated depreciation benefits available to the customers of wind turbine generators are merely a cash-flow advantage and needs to be understood in that context. Increasingly, the key drivers attracting investments in wind energy are its great potential as a captive power source, and as a catalyst for business growth," the statement added.

The statement added that Suzlon executives and employees had cooperated with the investigators and submitted all the relevant records to the authorities.

The income tax (investigation) directorate is also conducting surveys on at least six windmill owners and suppliers of equipment in four districts of Maharashtra. These districts are: Ahmednagar, Sangli, Satara and Dhule.

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BS Regional Bureau in Pune