In a significant development that has sent ripples through the Indian infrastructure and construction sector, the Income Tax Department has initiated a search operation at the manufacturing facility of Interarch Building Products Ltd located in Pantnagar, Uttarakhand, as well as its corporate office in Noida. The company, a leading player in pre-engineered building (PEB) solutions, confirmed that no formal written communication has been received from the authorities as of now.
Background of the Operation
Sources close to the matter revealed that the search was conducted under the purview of the Income Tax Department’s ongoing efforts to investigate potential discrepancies in financial disclosures and tax compliance. While the exact nature of the investigation remains undisclosed, the presence of officials at both the Pantnagar manufacturing unit and the Noida office suggests a coordinated and comprehensive probe.
The Pantnagar facility, located in Sector 2 of the Integrated Industrial Estate (IIE) in Rudrapur, is one of Interarch’s key production hubs. It specializes in pre-engineered industrial and commercial buildings and has been operational since 2005. The Noida office, which serves as the company’s corporate headquarters, is central to its administrative and strategic operations.
About Interarch Building Products Ltd
Founded in 1983, Interarch Building Products Ltd has grown into one of India’s foremost turnkey solution providers in the pre-engineered steel construction domain. The company offers integrated services including design, engineering, manufacturing, and on-site project management for the installation of PEB structures.
Over the years, Interarch has played a pivotal role in shaping India’s industrial and commercial infrastructure. Its portfolio includes metal ceilings, blinds, roofing systems, and large-scale steel buildings. The company’s clientele spans across sectors such as automotive, logistics, warehousing, and aviation. Notably, Interarch was involved in the roofing and sheeting of the Delhi Airport and has recently expanded its operations with a fifth manufacturing plant in Andhra Pradesh.
Market Reaction and Stakeholder Response
The news of the search has sparked concern among investors and stakeholders. Interarch was listed on the NSE and BSE in 2024, and its stock has shown strong performance since then. However, the current development may lead to short-term volatility in its share price, pending further clarity from the authorities.
Company officials have maintained that they are cooperating fully with the Income Tax Department and reiterated that no formal notice or written communication has been received. “We are committed to maintaining transparency and compliance with all regulatory requirements,” a spokesperson said.
Industry experts believe that while such searches are not uncommon, they can have reputational implications if not handled with diligence and openness. Given Interarch’s stature in the infrastructure domain, the outcome of this investigation will be closely watched.
Legal and Procedural Context
Under Indian tax law, the Income Tax Department is empowered to conduct search and seizure operations under Section 132 of the Income Tax Act, 1961. These operations are typically initiated when there is credible information regarding tax evasion or undisclosed income. If any incriminating evidence is found, the department may proceed with a block assessment under Section 158BC, which requires the submission of Form ITR-B through the e-Proceeding tab on the Income Tax portal.
As of now, there is no indication that such proceedings have been initiated against Interarch. The absence of formal communication suggests that the investigation is still in its preliminary stages.
Implications for the Sector
Interarch’s situation underscores the increasing scrutiny faced by infrastructure companies in India, especially those involved in large-scale government and private sector projects. With the government pushing for greater transparency and digitization in tax filings, companies are expected to maintain meticulous records and ensure full compliance.
The outcome of this search could set a precedent for how similar cases are handled in the future, particularly in the PEB and construction sectors. It also highlights the importance of robust internal audits and proactive engagement with regulatory bodies.
Sources: incometax.go, Bing.com, LinkedIn, Interarch Company Profile | Official Website
