HG Infra Engineering Ltd has received a show cause notice from the Income Tax Department amounting to ₹2.20 billion. The notice relates to alleged discrepancies in tax compliance. The development raises concerns over financial exposure, even as the company continues to execute major infrastructure projects across India.
The Jaipur-based infrastructure firm, known for its road and highway construction projects, disclosed that the tax authorities have issued a show cause notice seeking clarification on liabilities worth ₹2.20 billion. While details of the alleged discrepancies are yet to be fully clarified, the company has stated it will respond to the notice within the stipulated timeline.
The move comes at a time when HG Infra is actively engaged in multiple government contracts and has reported steady revenue growth. Analysts note that such tax-related issues could impact investor sentiment in the short term, though the company’s operational pipeline remains strong.
Notable updates
* Tax Department issues show cause notice worth ₹2.20 billion to HG Infra Engineering
* Company expected to respond with clarifications and supporting documentation
* HG Infra continues to execute large-scale infrastructure projects across India
* Potential short-term impact on investor sentiment due to compliance concerns
* Long-term fundamentals remain tied to government contracts and infrastructure demand
The tax notice underscores the importance of compliance in India’s infrastructure sector. For HG Infra Engineering, the immediate challenge lies in addressing regulatory concerns while maintaining momentum in its project execution pipeline.
Sources: Reuters, Economic Times, Business Standard