Income Tax (IT) authorities have conducted a verification of books of account at premises of Bangalore’s Sobha Developers on 10th October 2013. Company has mentioned this as a ‘routine’ process and has fully co-operated with the authorities conducting the search operations.

The market also does not seem to be too perturbed by this news. Share is trading absolutely flat at Rs. 322, marginally higher by Rs. 2, when the broader markets are higher by a percentage.

Despite slowdown in the real estate market, last week, company had announced sale figures of 1 million sq. ft. of new assets for quarter ended 30^th September 2013, at Rs. 623 crore, which were in-line with its annual guidance.

Probably, the IT department wanted to be sure that nothing fishy was cooking up in the company’s books.

In addition to Sobha, IT authorities visited offices of another Bangalore-based realtor, Prestige Estates’ premises, shares of which are trading higher by 1.2% at Rs. 137, hence unaffected by the ‘routine’ verification.