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The Income Tax Investigation Department, Mumbai, conducted search and seizure operations at the premises of Balu Forge on Tuesday, according to official sources. The raids have been underway since morning as part of an ongoing investigation.

More details are awaited as the searches continue.

Balu Forge Industries Limited is a global, precision engineering and metal forming company from India, established in 1990, which deals in manufacturing crankshafts and forged components for automotive, defence, railway, marine, and new energy vehicle (NEV) sectors, serving major OEMs worldwide and maintaining a strong aftermarket presence in over 80 countries.

With integrated forging and machining facilities, including advanced automation and capabilities for large components and defence applications like ammunition shells, Balu Forge is expanding into NEVs and heavy-duty forging.

Balu Forge Industries Ltd. reported a 35.5 per cent year-on-year (YoY) increase in net profit to Rs 65.04 crore for the quarter ended September 2025 (Q2 FY26). Total revenue for the same period was Rs 299.51 crore, representing a 34.4 per cent increase from the previous year.

Shares of Bhalu Forge Ltd plunged nearly 20 per cent to Rs 466.85 in the early hours of trade on Wednesday's trading session. As of 11:37 am, the stock was trading at Rs 489.65, down by 16.09 per cent from the previous close of Rs 583.55.

The stock hit its 52-week high of Rs 784 on June 12, 2025, while it declined to its 52-week low of Rs 429 on March 3, 2025.

1) What is an Income Tax raid?

An Income Tax raid signifies an action conducted by the Income Tax Department to invade a person's or company's site and confiscate papers, money, or properties that might be related to tax fraud or financial misconduct.

2) Why does the Income Tax Department conduct raids?

The main purpose of raids is to reveal the undisclosed income, check the records, collect the evidence for tax evasion or probe the companies which are suspected of having irregularities in billing, transactions, or financial reporting.

3) Who can be targeted in a tax raid?

Incomes, businesses, or corporations that are considered to be hiding their profit, generating false invoices, or committing tax evasion can be the targets. The linked entities or partners might also be included if there is any proof of their involvement.

4) What happens during a search and seizure operation?

Officials enter the premises, inspect records, documents, and electronic data, and may seize cash, gold, invoices, or other evidence that could be relevant to the investigation.

5) Does a tax raid mean the person/company is guilty?

No. A raid is part of an investigation. It does not automatically imply guilt, but it does indicate that the authorities are examining financial irregularities.

6) How long does a tax raid last?

The time span is contingent on the dimensions of the location and the intricacy of the accounting system. A few hours to a few days is the range.

7) Can the public know about ongoing raids?

Usually, the authorities do not divulge anything to the public until the operation is over. However, it is not uncommon for the media to report on raids once they are either in progress or are already over.

8) What are the consequences if irregularities are found?

In the case of undisclosed income or the issuance of violations, the Income Tax Department has the right to impose fines, ask for the payment of taxes, or take legal action against the individual or the company.

9) Can companies continue business during a raid?

If the conditions are right, the companies can still run their operations, but the tax officials will take control of the documents or the properties temporarily, thus causing an interruption in the regular business activities.

10) How should companies respond to an income tax raid?

Official cooperation, documentation provision upon request, calmness maintenance, and taxation or legal consultation for compliance and legal rights protection are the key measures mentioned.