A day before the counting of votes for a new government in Uttar Pradesh, the Income Tax Department searched residential and office premises of Uflex (formerly Flex Industries) chairman Ashok Chaturvedi and Himachal Futuristic Communications Limited (HFCL)’s former director Vinay Maloo, both considered close to Samajwadi Party leader Amar Singh, for suspected tax evasion.

Chaturvedi and Maloo were last publicly spotted with Amar Singh during Abhishekh Bachchan’s wedding ceremonies in Mumbai.

The search operations covered ten facilities of Uflex in Uttar Pradesh and Delhi. The IT Department also conducted survey operations on five premises of Uflex, promoted as Flex Industries by Chaturvedi in 1983.

Raids were also simultaneously carried out in Chaturvedi’s residential premises from where officials said cash, jewellery and documents were seized. They said it would take time to ascertain the extent of tax evasion.

Reacting to the searches, Samajwadi Party leader Amar Singh said these were “coercive” measures by the Congress-led government at the Centre. “If they want to raid me or Mulayam Singh, they are more than welcome to do that. We are not afraid, or apprehensive of the Congress’s coercive measures”, he told reporters outside Parliament.

Chaturvedi’s name had also cropped up in the controversial allotment of land in Noida during the Samajwadi Party’s tenure but the allocations were subsequently cancelled. Uflex, which is listed on Bombay Stock Exchange, makes packaging products, polyester film, inks and adhesives.

Shares of Uflex plunged to Rs 151.80 from the intra-day high of Rs 158, while HFCL’s stock dropped to close at Rs 24.20 from the day’s high of Rs 26.