Dalmia Bharat faces I-T scrutiny after HC order

The Dalmia Bharat group is facing an income tax (I-T) scrutiny following an April 23 ruling of the Madras High Court, which upheld the reopening of I-T assessment proceedings against Dalmia Cement (Bharat) Ltd (DCBL) in a transaction involving US-based private equity giant KKR & Co.

- SHINE JACOB & DEV CHATTERJEE

The tax authorities have alleged that an investment of ₹500 crore made by KKR Mauritius Cement Investment Ltd, a KKR & Co investment vehicle, in DCBL in 2010-11 for a 14.99 percent stake, prima facie suggests round-tripping of unaccounted money by the company.

An email sent to the Dalmia Bharat group on Tuesday did not elicit any response till the time of going to the press. KKR & Co declined to comment.

KKR & Co itself is not a party to the case and has not been accused of any wrongdoing so far. A legal source said the matter is between the tax authorities and Dalmia Cement, and KKR & Co has not been a party to the court proceedings in any way. Accordingly, there is nothing for KKR to appeal against the order, the source said.