Tulip Telecom has been very volatile for the past couple of days. The stock had breached its lower circuit on 19th at Rs.4.09, it then hit the upper circuit yesterday at Rs.4.35 and today, it has once again breached the lower circuit today at Rs.4.02, down 5%.

The stock, which as such has become worse than a penny stock today, slumped further on news that the company’s CMD has been arrested for allegedly evading service tax to the tune of around Rs.32 crore. There is news that the CMD, Lt Col (Retd) HS Bedi, has been remanded to judicial custody for 14 days.

As per the Finance Bill, today any evasion of service tax  of Rs.50 lakh and above is a cognizable offence.