“The Commissioner of Central GST
and Customs has carried out search and seizure proceedings at various premises of the company on May 23, 2019, and further inquiry was conducted on May 24, 2019 at GST
Bhavan office of Vadodara,” the company said on Saturday in a regulatory filing.
Searches were conducted on various premises of the company on May 23, following which a racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crore involving turnover of approximate Rs 300 crore had surfaced, news
agency IANS reported.
Whole-time director Abhishek Singh, his brother Harshvardhan Singh, and chief financial officer Paresh Thakkar are under judicial custody since May 24, 2019.
On Monday, MBL announced that two independent directors Bharat Vyas and Milind Babar, and director Dhruv Agrawal have resigned.
"Bharat Vyas has resigned due to pre-occupation and Milind Babar and Dhruv Agrawal mainly due to GST
search," the company said in an exchange filing.
Furthermore, the company has cancelled the board meeting schedule to be held on today, May 28, 2019 due to unavoidable circumstances and also due to want of quorum during the meeting. The agenda of the meeting was to consider financial results for quarter and year ended March 2019.
The market price of Manpasand Beverages
has tanked nearly 90 per cent from its all-time high level of Rs 512 touched in September 2017. The stock got listed on the bourses in July 2015 with its IPO price (adjusted to 1:1 bonus issue) at Rs 160 per share.