Ashoka Buildcon hits 20% LC

Ashoka Buildcon has hit the 20% lower circuit at Rs.136 and a new 52-week low too.

There are unconfirmed news reports that the Income Tax authorities have raided the company’s Nashik office. The accusation is that the company, returning its favour for bagging some contracts from Chhagan Bhujbal, constructed his bunglow.

BJP MP Kirit Somaiya has said that they have found entries for over Rs.40 crore from Ashoka Buildcon to the Bhujbal welfare fund – a proof that Bhujbals had taken favours from Ashoka Buildcon in return for road and toll contracts.

The company had denied having built the Bhujbals' bungalow or having taken the Bhujbal family on any trip, as was alleged by Somiaya.

The stock exchange has sought a clarification from the company on the same news; reply is awaited.