Ulfex is a big loser today, currently down almost 8% at Rs.64.85, with an intra day low at Rs.61.15. Volumes are up over 7 times.

The stock is deep in the red following news of early morning Income Tax raid at 37 of its premises, spread in nine cities. The news is that the officials have found bogus sale worth Rs 100 crore alongwith unaccounted cash worth Rs 2 crore. The Director General of IT said that have so far they have detected 20-25 companies (associated with Uflex) which we suspect are bogus/dummy, where bogus sale of Rs 100 crore was shown. 

The promoter of the company has been in the news for wrong reasons – first was in 2001, when Ashok Chaturvedi was arrested by the CBI under the Prevention of Corruption Act for allegedly bribing a top excise department official. And then in 2010, he was once again sentenced to four years in prison by a CBI court in a 1994-95 Noida land scam case.