Ashoka Buildcon Slumps on Reports of Income Tax Raids

Shares of road construction company Ashoka Buildcon slumped as much as 20 per cent to hit 52-week low of Rs 135.70 on Wednesday. Press Trust of India, citing sources, said income tax department and enforcement directorate (ED) on Tuesday conducted searches at its office in Nashik.

Last month, allegations of corruption were leveled against the company, with reports saying that Ashoka Buildcon had allegedly financed constructions by the family of former Maharashtra Deputy Chief Minister Chhagan Bhujbal and also sponsored trip of former Member of Parliament Sameer Bhujbal  to FIFA World Cup in South Africa.

Ashoka Buildcon later denied the allegations. 

In a clarification issued to the stock exchanges on March 26, the company said, "Ashoka Buildcon clarifies that it has not contributed or financed any of the constructions of Bhujbal family including their bungalow at Nasik. It also clarifies that it has not sponsored the trip of Sameer Bhujbal then MP to watch and attend the FIFA World Cup in South Africa. Ashoka Buildcon Ltd. always follows ethical practices in the business".

Shares of Ashoka Buildcon were locked in lower circuit of 20 per cent at Rs 135.70.