Alkem Laboratories, a prominent pharmaceutical company, witnessed a dramatic downturn in its share price, plummeting over 14% following allegations of tax fraud amounting to ₹1000 crores. The turmoil began with media reports suggesting that the income tax department had uncovered widespread malpractice within the company, particularly regarding its operations in Sikkim.
According to sources cited by India Today TV, the income tax department’s investigation revealed that Alkem Laboratories had allegedly manipulated deductions for its Sikkim manufacturing unit, resulting in fraudulent claims exceeding ₹1000 crores. These deductions were reportedly made under various sections, including 80-IC, as claimed by sources within the company.
Furthermore, allegations surfaced regarding payments made by Alkem Laboratories to medical professionals in exchange for prescribing their medications. India Today reported that the investigation uncovered payments amounting to hundreds of crores, potentially leading to substantial penalties for the company.
Despite these accusations, Alkem Laboratories vehemently refuted the rumours and allegations of tax evasion, as reported by CNBC-TV18. The company’s denial stands in contrast to the damning claims made by various media outlets.
The situation escalated further when it was disclosed that the income tax authorities had conducted surveys at Alkem Laboratories’ offices and premises following information regarding significant tax evasion. This ongoing inquiry involved scrutinizing data, balance sheets, and company officials’ statements, indicating the allegations’ gravity.
From a technical standpoint, Riyank Arora, a Technical Analyst at Mehta Equities Ltd, emphasized the significance of the support level at ₹4,700 for Alkem Laboratories’ share price. The stock’s decline of nearly 11% amidst negative news and sentiment underscored the critical juncture at which it finds itself. Arora suggested that a daily closing above ₹4,700 could trigger a relief rally towards ₹5,100, whereas a closure below this level would signal immediate negativity.
As Alkem Laboratories grapples with these accusations and the ensuing market repercussions, investors and stakeholders await further developments amidst the uncertainty surrounding the company’s future trajectory.
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