Hinduja Group company in ₹2,700-crore tax dispute, firm denies getting any notice

The Income Tax department is examining allegations that a Hinduja Group company avoided tax liabilities of around Rs 2,700 crore. This alleged avoidance is linked to a sale transaction of group company Hinduja Global Solutions (HGS) to another subsidiary NXTDigital. Hinduja Global Solutions sold its healthcare services business to wholly-owned subsidiaries of Betaine BV, a specially incorporated Netherlands-based entity. Hinduja Group subsequently merged NXTDigital, its digital media and communication business, into HGS. Though a formal tax notice is yet to be sent to the Hinduja Group, Income Tax department sources confirmed the probe to Business Today. According to the sources, the alleged tax evasion on capital gains pegged at around Rs 1,000 crore was detected in the deal. Following reports, the National Stock Exchange and the Bombay Stock Exchange today sought clarifications from HGS on this matter. When contacted, the Hinduja Global Solutions denied having received any demand notices.