DB Corp in the red

DB Corp, which had closed on Friday at Rs.100.35, went down into the red to hit an intrdaday low at Rs.90.60. Its 20% LC of the day stands at Rs.80.30.

The stock price tanked on news that there has been an Income Tax (IT) raid.

The company said, “This is to inform you that the officials of Income Tax Department (‘IT department’) have visited the Company's Offices in connection with the search under the relevant provisions of the Income-Tax Act on July 22, 2021.”

The IT department claimed that it has found fictitious transactions of Rs 2,200 crore after raids at multiple offices of the media group. Apart from 26 lockers found at homes of promoters and key employees, the IT department has also found unpaid taxes on Rs 700 crore of income over six years, violation of stock market rules, and evidence of profits being drawn from listed companies have been found in searches at the Dainik Bhaskar Group.