Electronics retailer Aditya Vision reports GST search operations; 7 warehouses seized, 3 stores closed

The stock was trading at around Rs 3,330 at 1 pm on April 9, which was 2.8 percent lower than its opening.

Electronic retail chain Aditya Vision informed the exchanges that tax authorities had conducted search operations at its facilities in Uttar Pradesh.

According to the exchange filing, the Uttar Pradesh Goods and Services Tax (GST) authorities issued an order of seizure for seven of their temporary warehouses and an order of prohibition for three stores on April 8.

The stock was trading at around Rs 3,330 at 1 pm on April 9, which was 2.8 percent lower than its opening.

Also read: GST notices round-up: LIC faces Rs 806-cr notice, Zomato looking at 3 years of litigation, and more

In a filing dated April 9, the company stated, "In Compliance of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that on Monday, April 08, 2024, GST search by Uttar Pradesh State GST has been conducted at all Showrooms and warehouses of the Company situated at Uttar Pradesh."

The company informed that it has fully cooperated with the authorities and given them the necessary information and support. However, it stated the authorities issued an INS 2 (order of seizure) for seven temporary warehouses and INS three (order of prohibition) for three stores late in the night of April 8.

The filing stated, "The Company is an ethical, law-abiding company and follows the best corporate governance practices and is taking necessary steps against these actions. In our assessment these measures by GST department may have financial impact to the extent limited to sale of 3 stores and blocking of stocks of 7 temporary warehouses. The Company is taking all steps to normalize operations immediately."

The filing also stated that the exchanges will be informed from time to time about any developments in this front.

Also read: GST intelligence unit detected over Rs 1.98 lakh crore worth tax evasion cases in 2023

Emkay Global Financial, which has a 'buy' rating on the stock, said in its December 2023 report that the company has a leadership share of over 50 percent in Bihar and Jharkhand aided by low penetration, curated assortment, competitive pricing, Buy & Win scheme, and impeccable service/consumer trust.

It added, "AVL has passed the litmus test of scale and is now a well-oiled machine to pursue the 5x expansion opportunity in six states of the Hindi Heartland."