Manpasand Beverages share price hit its lower circuit in early trading on Monday after top executives of Vadodara-based Manpasand Beverages were arrested by Goods and Services Tax (GST) department officers for creating fake company units and committing tax invasion.
Manpasand Beverages' Managing Director Abhishek Singh, his brother Harshvardhan Singh and the Chief Financial Officer Paresh Thakkar were arrested in the case, according to a press release by the CGST.
Manpasand Beverages share price was trading 20% or 22 points lower at 88 level on BSE.
The share opened 20% lower at the same price compared to the previous close of 110. The stock has fallen after three consecutive days of gain. There were only sellers in the market, not buyers.
Manpasand Beverages share price has fallen 1.12% since the beginning of this year and lost 79.58% during the last one year. As per the statement, the authority carried out raids on several premises of Manpasand Beverages on May 23 (Thursday).
"The searches unearthed a huge racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crores and involving turnover of Rs 300 crore," said the press release.
"The continuing investigation has unearthed a network of more than 30 fake units located in various parts of the country which were used for committing fraud by availing illegal credit. The investigation regarding the ultimate beneficiary of the fraud and web of shell companies is under progress," as per the statement.
The fruit juice maker company owns brands such as MangoSip, Fruits Up, Manpasand ORS, and OXY Sip. Manpasand's MangoSip brand was the second- largest selling mango drink in India in 2014.