Date:07/04/2006 URL: http://www.thehindubusinessline.com/2006/04/07/stories/2006040704830500.htm

Back Suzlon, subsidiaries under I-T survey

Our Bureau

Investigations part of normal procedure, says co

Pune , April 6

Suzlon Energy Ltd and its subsidiaries have come under the scanner of the Income-Tax (Investigations) division. A survey has been carried out at wind farm locations where the company's customers have invested in wind power projects.

According to Mr Shivkumar Sharma, Additional Director (Investigations) Income Tax, Pune region, the search is extending across Rajasthan, Maharashtra, Gujarat, Daman and Diu, Karnataka, Andhra Pradesh, Tamil Nadu and Pondicherry.

He said a total of 35 farms were being searched. In Maharashtra, the search covered Satara, Sangli, Dhulia and Ahmednagar. Surveys were conducted against at least six wind mill installers and equipment suppliers in the four districts.

Mr Sharma said major investments had taken place in the windmills as this allowed 100 per cent depreciation. He said the I-T Department had specific information where the windmill players had claimed depreciation and tax benefits without generating any power. "This ensured that the investments were tax free and the income that would be generated from the windmill once it becomes operational went directly to the owner of the windmill," he added.

In an official communication, Suzlon said: "Suzlon understands that the investigations are part of normal procedure and as such, will have no adverse impact on the company's current or future business plans. All Suzlon stakeholders have explicit faith in Suzlon's values and commitment to business ethics, and we as an organisation continue to conform to the highest standards of corporate governance."