Income Tax Department Raids Dilip Buildcon Offices Over Alleged Financial Irregularities
The Inquest
October 14, 2025 : The Income Tax Department conducted coordinated searches on October 13, 2025, targeting multiple premises of Dilip Buildcon Limited (DBL), a prominent infrastructure company owned by Dilip Suryavanshi, Madhya Pradesh’s second-richest individual. The raids, executed by a team from Amritsar under the Chandigarh region’s Directorate General of Investigation, focused on five locations in Bhopal and Indore, prompted by allegations of share pricing irregularities and financial mismanagement. The operation has drawn attention due to Suryavanshi’s close ties with Union Agriculture Minister Shivraj Singh Chouhan, raising questions about the timing and intent of the searches.
Scope of the Raids
The searches began early Monday at DBL’s Chunabhatti headquarters in Bhopal, Kolar Road, MP Nagar, and Indore’s Pithampur Industrial Area and Super Corridor. Officers seized documents, account books, and digital records to investigate suspected tax evasion and financial irregularities. Sources indicate the team uncovered “red ledgers” detailing unreported transactions, including ₹75 crore allegedly routed through Mauritius-based shell companies as investments but diverted elsewhere. The operation, led by DG Investigation Batsla Jha, excluded local Bhopal tax officials, with only minimal local police support for security. Jha confirmed the raids to Dainik Bhaskar but provided no further details. 0
This marks DBL’s second significant encounter with the Income Tax Department. A 2015 raid (following a 2012 action) uncovered tax evasion worth over ₹100 crore, leading to penalties. The current probe stems from a Mumbai-based firm’s complaint about manipulated share pricing, with investigators now auditing DBL’s broader financial transactions. 2 4 Allegations also include misuse of investment trust funds, intended for solar and metro projects but redirected to other ventures, potentially underreporting profits.
Political Connections and Public Scrutiny
The raids have sparked interest due to Suryavanshi’s longstanding friendship with Shivraj Singh Chouhan, a prominent BJP leader and former Madhya Pradesh Chief Minister. Their association, rooted in shared regional ties and political networks, has fueled speculation about political motivations behind the searches, especially given DBL’s major contracts with the state government, including the ₹247 crore Bhopal Metro project and a ₹25,000 crore solar energy initiative. Opposition leaders, particularly from Congress, have called for transparency, alleging favoritism, while BJP officials described the raids as routine enforcement. 1
Dilip Buildcon’s Profile and Recent Projects
Founded in 1987 by Dilip Suryavanshi, DBL is among India’s largest infrastructure firms, operating in roads, highways, mining, solar energy, metro rails, and urban development across 17 states with over 17,000 employees. From a ₹4 crore contract in 1993-94, DBL scaled up to a ₹1,000 crore Ahmedabad-Godhra highway project by 2007. Recent contracts include ₹2,905 crore and ₹1,115 crore highway projects in Rajasthan and Kerala, respectively, and metro projects in Kerala and Gurugram (₹1,500 crore each). On October 10, 2025, DBL’s joint venture with APMPL secured a 100 MW captive solar project in Mandsaur, Madhya Pradesh, at ₹2.09/kWh, to be developed on 315 acres for Madhya Pradesh Jal Nigam over 25 years. 6
Suryavanshi’s wealth, estimated at ₹4,430 crore in the 2025 Hurun India Rich List, reflects a ₹630 crore increase, placing him second among Madhya Pradesh’s billionaires. 4 Executive Director Devendra Jain, who joined DBL in 1995 at age 21, is also under scrutiny.
Market and Operational Impact
The raids triggered a market response, with DBL shares dropping 8% from ₹435 on October 10 to a 4% dip by close on October 13, erasing ₹500 crore in market capitalization. Geojit Financial downgraded the stock to “sell” with a ₹385 target, citing governance concerns. 5 DBL issued a statement affirming cooperation with authorities and confidence in its compliance. As searches continue into October 14, the outcome remains uncertain, with potential implications for DBL’s ongoing projects and reputation.
